Lizzy: Buying a toaster requires an insurance plan that is 20% of the MSRP, plus a mandatory state tax rate of 50% after the insurance plan calculation. Jon chooses to buy a toaster that costs $30 at MSRP. What is the total he must pay?.
Me: Hmmm, let me think. I think this is the detailed solution:
The insurance plan costs $30 * 0.2 = $6. The pre - state tax total is $30 + $6 = $36. State tax will be $36 * 0.5 = $18. Jon needs to pay $18 + $36 = $54 for his new toaster. Final answer: 54.