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30 December, 09:58

Sam lives in Massachusetts and wants to buy a television that cost $2,000. The sales tax in Maine is only 5% which is less than the 6.25% in Massachusetts. Dave tells Sam to just buy the television in Massachusetts. If gas costs $30 to get to Maine, who is correct? Explain.

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  1. 30 December, 10:07
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    I would say that Dave is correct because it is cheaper to buy in massachusetts. To know the answer, let's look at the total costs of two options. First, we multiply 2000 to 0.05 which is the tax rate in Maine then we add the tax amount to the principal amount then add 30 for gas costs. So the total cost to buy a TV in Maine would be 2130. In order to get the one for Massachusets, all you have to do is multiply 2000 with 0.0625 which is the tax rate, then add the tax to the principal and you will get 2125. So buying a TV in Massachusets is the best idea
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