Adam will owe $19.72 to store X, on buying a book of cost $17.00, having a tax rate of 6%, and charging a delivery cost of 10% on the book. Hence, the 2nd option is the right choice.
What does the cost to a consumer comprise of?
The cost that a consumer owes to the store on buying any good is the marked cost of the good, minus discounts if any, plus the delivery charges if required, plus the necessary tax.
How to solve the given question?
In the question, we are asked to find the cost that Adam owes on the purchase of a book from Store X.
We are given the price of the book from store X as $17.00.
we are also informed that the tax is applied only on the price of the book, at a rate of 6% for Store X and Store X charges a delivery charge equal to 10% of the price of the book.
Now, the price of the book = $17.00 (given).
The tax = 6% of the price = 6/100 * $17.00 = $1.02
The delivery charge = 10% of the price = 10/100 * $17.00 = $1.70
Now, the total cost that Adam owes = Price of the book + Tax + Delivery charges.
or, the total cost that Adam owes = $17.00 + $1.02 + $1.70 = 19.72.
∴ Adam will owe $19.72 to store X, on buying a book of cost $17.00, having a tax rate of 6%, and charging a delivery cost of 10% on the book. Hence, the 2nd option is the right choice.
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