Question

Henrietta has $120 to buy a new bicycle. She finds the bike that she wants to buy on sale for 20% off the regular price of $150. If there is 6% sales tax, which of the following best describes the amount of money Henrietta has with regards to buying the bike. a. Henrietta has enough before the tax, but not enough after the tax. b. Henrietta has enough money even after the tax. c. Henrietta does not have enough money even before the tax. d. There is not enough information given.

Answer 1

Given:
Henrietta budget: 120
Original Price of the bike : 150
discount: 20%
sales tax: 6%

150 * 20% = 30
150 - 30 = 120 discounted price

120 * 6% = 7.2 sales tax
120 + 7.2 = 127.20 total cost of the bike

Since Henrietta only has 120, A.) Henrietta has enough before the tax, but not enough after the tax.