Answer:
a. [tex]Savings = \$16[/tex]
b. [tex]Price = \$96[/tex]
Step-by-step explanation:
Solving (a):
[tex]Price = \$80[/tex]
[tex]Coupon = 20\%[/tex]
Required
Determine her savings.
[tex]Savings = Coupon * Price[/tex]
[tex]Savings = 20\% * \$80[/tex]
[tex]Savings = \$16[/tex]
Solving (a):
[tex]Price = \$120[/tex]
[tex]Coupon = 20\%[/tex]
Required
Determine the price before tax
First, we need to determine her savings
[tex]Savings = Coupon * Price[/tex]
[tex]Savings = 20\% * \$120[/tex]
[tex]Savings = \$24[/tex]
The price before tax is calculated as follows:
[tex]Price = \$120 - \$24[/tex]
[tex]Price = \$96[/tex]