2. The Youngs decided to book the room at the price that Mrs. Young was given, $1879, because it included breakfast for both of them for the entire stay. The travel agent could not match that price. At the end of the trip, Mr. Young received a bill showing a pre-tax amount of $1879. The tax is 8.5%. When the Youngs went to check out, they told the front desk that the refrigerator in the room had not worked during the majority of their time there. The hotel decided to give them a 5% discount off the pre-tax amount. Mr. Young says the new total will be $1944.77. He shows Mrs. Young how he found the new total. Since we have to add 8.5% tax and subtract 5% for the discount, this means we will add 3.5% in the end.
8.5 − 5 = 3.5
Therefore, we just need to multiply the cost of the room by 3.5% and add this number to the cost of the room to determine what we owe.
3.5% x 1879= 0.035 x 1879= 65.765, which rounds to $65.77.
Add $65.77 to the total $1879 to get $1944.77.
Explain why Mr. Young’s calculations are incorrect. What is the correct total? Show your work. Round your answers to the nearest cent.