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Alright, so this is an short (but difficult) accounting question regarding a rec

ID: 2636268 • Letter: A

Question

Alright, so this is an short (but difficult) accounting question regarding a recent buy.

If there is not enough information here, feel free to ask.

Hannah and Jessi went to the store. A deal was going on: Buy 1 shirt your next one 1 half off (but only with a credit card).

Hannah wanted only 1 shirt when Jessi wanted 2 shirts. Hannah had a credit card so she offered to pay for Jessi's shirts as long as they split the total discount.

The sales tax for each item is 8% of the total price after the discount.

Hannah bought one shirt which came out to be $31.31 with tax.

Jessi bought 2 shirts each worth $55 (not including tax). So $55 for one and $27.50 for the second, when discount is applied. Equaling $89.10 with tax.

So there were to seperate transactions, Jessi paid for Hannahs shirt with cash and Hannah paid for Jessi's shirts with credit.

The discount applied to Jessi's second shirt was $27.50. They are spliting the discount so each will recieve $13.75 towords their purchase.

How much does Jessi owe Hannah after they split the discount??

Explanation / Answer

The price of Jessi two shirts including tax is $89.10

The price of Hannah one shirt including tax is $31.31

The discount applied to each person is $13.75

The money that Jessi owe Hannah after they split the discount is

Add the discount offered to Hannah with the price of Jessi's two shirts = $89.10 + $13.75 = $102.85

But Jessi already paid $31.31 for Hannah shirt = $102.85 - $31.31 = $71.54

Hence, the amount that Jessi must pay Hannah is $71.54

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