If a store marks up price by 25% and then adds 8% tax, what is the final price multiplier relative to cost?

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Multiple Choice

If a store marks up price by 25% and then adds 8% tax, what is the final price multiplier relative to cost?

Explanation:
Percent increases are multiplicative. Convert each percentage to a multiplier and multiply them. A 25% markup makes the price 1.25 times the cost. Adding 8% tax makes it 1.08 times that amount. Multiply them: 1.25 × 1.08 = 1.35. Therefore the final price is 1.35 times the cost.

Percent increases are multiplicative. Convert each percentage to a multiplier and multiply them. A 25% markup makes the price 1.25 times the cost. Adding 8% tax makes it 1.08 times that amount. Multiply them: 1.25 × 1.08 = 1.35. Therefore the final price is 1.35 times the cost.

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