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Kala's family is shopping for a large screen TV. The TV they decided on has a retail price of [tex]$\$1,000$[/tex] at four stores. The state sales tax is [tex]5\%[/tex]. Each store is offering a different sales promotion, as listed in the table.

\begin{tabular}{|c|l|}
\hline Store & Promotional Offer \\
\hline A & [tex]$\[tex]$80$[/tex][/tex] rebate \\
\hline B & [tex]$10\%$[/tex] discount on price \\
\hline C & Store pays all sales tax \\
\hline D & [tex][tex]$\$[/tex]40$[/tex] rebate with store paying half of sales tax \\
\hline
\end{tabular}

Which store has the best deal?

A. Store A
B. Store B
C. Store C
D. Store D



Answer :

GinnyAnswer
Let's analyze the offers from each store one by one:

Store A: [tex]$80 rebate 1. Retail price: $[/tex]1000
2. Sales tax rate: 5%
3. Calculate the sales tax: [tex]\( 1000 \times 0.05 = 50 \)[/tex]
4. Add the sales tax to the retail price: [tex]\( 1000 + 50 = 1050 \)[/tex]
5. Subtract the rebate: [tex]\( 1050 - 80 = 970 \)[/tex]

The final price at Store A is \[tex]$970. Store B: 10% discount on price 1. Retail price: $[/tex]1000
2. Discount: [tex]\( 1000 \times 0.10 = 100 \)[/tex]
3. Subtract the discount from the retail price: [tex]\( 1000 - 100 = 900 \)[/tex]
4. Calculate the sales tax on the discounted price: [tex]\( 900 \times 0.05 = 45 \)[/tex]
5. Add the sales tax to the discounted price: [tex]\( 900 + 45 = 945 \)[/tex]

The final price at Store B is \[tex]$945. Store C: Store pays all sales tax 1. Retail price: $[/tex]1000
2. No additional sales tax cost as the store pays it.

The final price at Store C is \[tex]$1000. Store D: $[/tex]40 rebate with store paying half of sales tax
1. Retail price: [tex]$1000 2. Sales tax rate: 5% 3. Calculate the sales tax: \( 1000 \times 0.05 = 50 \) 4. Store pays half of the sales tax: \( 50 \times 0.5 = 25 \) 5. Add half of the sales tax to the retail price: \( 1000 + 25 = 1025 \) 6. Subtract the rebate: \( 1025 - 40 = 985 \) The final price at Store D is \$[/tex]985.

Now, let's compare the final prices:
- Store A: \[tex]$970 - Store B: \$[/tex]945
- Store C: \[tex]$1000 - Store D: \$[/tex]985

The best deal is at Store B with a final price of \$945.

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