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ASVAB · Interest, Discount, and Markup

An item costs $1,200. With 6% sales tax, what is the total price?

Reviewed by Jordan Morley, Editorial Lead at 247SimpleTests. Written by the 247SimpleTests Editorial Team from the official source material cited on every question.

Correct answer

$1,272

  1. A $1,268
  2. B $1,206
  3. C $1,272
  4. D $1,260

Why this is the answer

Tax = 6% × $1,200 = $72. Total = $1,200 + $72 = $1,272. A shortcut: total with tax = price × 1.06 = 1,200 × 1.06 = 1,272. The distractor $1,206 adds only $6 (treating 6% as $6), $1,260 adds 5%, and $1,268 is a near-miss. Sales tax is always applied to the full pre-tax price, then added on top of it.
Source: ASVAB AR, Sales Tax

Practice more questions

This question is from our ASVAB Practice Tests practice test. Take the full practice test to test your knowledge across all Interest, Discount, and Markup and other topics.

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About this topic: Interest, Discount, and Markup

Interest, discount and markup questions use the same percentage machinery: simple interest (principal × rate × time), sale prices after a discount, and selling price after a markup. Watch for two-step problems where the percentage applies to a changed amount. This is one of 9 Arithmetic Reasoning questions on interest, discount, and markup, each with a full explanation on a single study page.

New to this exam? Our ASVAB exam guide explains the format, scoring, and how to prepare.

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