The plaid flannel shirt that you have wanted for months is now on sale at the mall for $35. The sales tax at the mall is 7%. Before you leave to buy the shirt, you see an ad for the same shirt for $30 with a sales tax of 9.5% at a shop 20 miles away.
Decide which shirt is the better buy and explain why. Can you think of one reason that would make the more expensive shirt a better buy?
Answer (2)
The shirt that costs 35.00 is the better buy because even though the shirt is more expensive than the other, it also has less tax. Also the shirt is local which saves you money on gas and wear and tear on your vehicle. In the end the 35.00 shirt is your smartest bet!
The shirt from the shop is the better buy at $32.85, while the mall shirt costs $37.45. However, the mall shirt could be more convenient to purchase as it's local, saving on travel time and costs. This might justify paying the higher price for the shirt at the mall.
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