Multiple choice

In a bustling marketplace, a vendor advertises a special promotion: a 20% discount on the marked price of an item, but he also levies a 6% sales tax on the discounted price. If a customer pays $480 as sales tax, then what was the original marked price of the item (in dollars)?

  1. 1,000

  2. 4,800

  3. 8,000

  4. 10,000

  5. 12,000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let marked price be M. Discounted price = 0.8M. Tax = 0.06 * 0.8M = 480. 0.048M = 480. M = 480 / 0.048 = 10,000.

AI explanation

Let the marked price be x. The discount is 20%, so the sales tax of 6% applies to the discounted price of 0.80x. The sales tax amount is 0.06 multiplied by 0.80x, which equals 0.048x. Setting 0.048x equal to 480 and solving gives x as 10,000.

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