A store purchased a DVD for $12 and sold it for a markup of 50% more to the customer. The customer was charged 7% tax on the price the customer paid. How much did the customer pay in all?

Answer 1

The first step to solving this problem is to come up with a plan.

1. First you need to find the price of the DVD after the markup
2. Next you need to find the price of the DVD and the tax

A markup means that the DVD costs more. You should add 50% to 100% (the original price of the DVD) to get 150%. You can write 150% as a decimal as 1.5. Next multiply $12 x 1.5 to get an answer of $18, the price of the DVD after the mark up.

Tax is also something extra that a person has to pay. You should add 7% to 100% (the price of the DVD after the markup). 107% written as a decimal is 1.07. When you multiply $18 x 1.07, you get $19.26 as the price that the customer will have to pay.