Discount and Tax Calculation on Stereo System Purchase

Calculation of Final Cost:

Original Price: $200

Discount: 15%

Sales Tax: 7%

Final Cost Calculation:

To calculate the final cost of the stereo system, we need to first determine the discounted price after applying a 15% discount to the original price of $200. Then, we calculate the sales tax on the discounted price to arrive at the final cost.

Step 1: Calculate Discount

Discount Amount = Original Price x Discount Rate

Discount Amount = $200 x 0.15 = $30

After applying the 15% discount, the price of the stereo system becomes:

Discounted Price = Original Price - Discount Amount

Discounted Price = $200 - $30 = $170

Step 2: Calculate Sales Tax

Sales Tax Amount = Discounted Price x Sales Tax Rate

Sales Tax Amount = $170 x 0.07 = $11.90

Final Cost Calculation

Final Cost = Discounted Price + Sales Tax Amount

Final Cost = $170 + $11.90 = $181.90

Therefore, the final cost of the stereo system after applying a 15% discount and a 7% sales tax is $181.90.