Stephanie plans to buy a big screen TV in 2 years. She believes the selling price will be $1,800 at that time. A tax of 13% will be added to the selling price. The total price that Stephanie has to pay is to be determined.
If an item with price P has a tax of T% applied, the total price that the buyer has to be pay is equal to P( 1+ T/100).
Here, the price of the TV is estimated to be $1,800, and the applicable tax rate is 13%.
The total cost of the TV is then equal to the follwing:
The total price of the TV would be $2,034.