A product price is $60. The price is reduced by 25% for a sale. If sales tax is 8%, what is the final price after tax?

A product price is $60. The price is reduced by 25% for a sale. If sales tax is 8%, what is the final price after tax?

• A. 43.20
• B. 48.60
• C. 55.20
• D. 49.20

Answer: (B)

Work with percentages in sequence: discount first, then tax. A 25% reduction on 60 leaves 75% of the price, so 60 × 0.75 = 45. Then apply 8% sales tax to that discounted price: 45 × 0.08 = 3.60. Add the tax to the discounted price: 45 + 3.60 = 48.60. The final price after tax is 48.60.

Work with percentages in sequence: discount first, then tax. A 25% reduction on 60 leaves 75% of the price, so 60 × 0.75 = 45. Then apply 8% sales tax to that discounted price: 45 × 0.08 = 3.60. Add the tax to the discounted price: 45 + 3.60 = 48.60. The final price after tax is 48.60.