Discount and Tax Calculation on Stereo System Purchase
Calculation of Final Cost:
Original Price: $200
Discount: 15%
Sales Tax: 7%
Final Cost Calculation:
To calculate the final cost of the stereo system, we need to first determine the discounted price after applying a 15% discount to the original price of $200. Then, we calculate the sales tax on the discounted price to arrive at the final cost.
Step 1: Calculate Discount
Discount Amount = Original Price x Discount Rate
Discount Amount = $200 x 0.15 = $30
After applying the 15% discount, the price of the stereo system becomes:
Discounted Price = Original Price - Discount Amount
Discounted Price = $200 - $30 = $170
Step 2: Calculate Sales Tax
Sales Tax Amount = Discounted Price x Sales Tax Rate
Sales Tax Amount = $170 x 0.07 = $11.90
Final Cost Calculation
Final Cost = Discounted Price + Sales Tax Amount
Final Cost = $170 + $11.90 = $181.90
Therefore, the final cost of the stereo system after applying a 15% discount and a 7% sales tax is $181.90.