Phil earned $800 at his summer job and saved all of his earnings .He wants to buy a deluxe drum kit that is regularly priced at $925 but is on sale for `1/5` off . The drum kit is subject to 5% sales tax after all discounts are applied . If phil buys the kit on sale and gives the sales cherk his entire summer earnings , how much change should he receive ?

Options

A. 23
B. 37
C. 40
D. 77

Answer

To solve the problem step-by-step, we will calculate the discounted price of the drum kit, apply the sales tax, and then determine how much change Phil will receive after his purchase.

### Step 1: Calculate the Discount
The original price of the drum kit is $925. The discount is given as \( \frac{1}{5} \) of the original price.

\[ \text{Discount} = \frac{1}{5} \times 925 = \frac{925}{5} = 185 \]

### Step 2: Calculate the Discounted Price
Now, we subtract the discount from the original price to find the discounted price.

\[ \text{Discounted Price} = \text{Original Price} - \text{Discount} = 925 - 185 = 740 \]

### Step 3: Calculate the Sales Tax
The drum kit is subject to a 5% sales tax on the discounted price.

\[ \text{Sales Tax} = 5\% \times \text{Discounted Price} = \frac{5}{100} \times 740 = 37 \]

### Step 4: Calculate the Total Amount to be Paid
Now, we add the sales tax to the discounted price to find the total amount Phil has to pay.

\[ \text{Total Amount} = \text{Discounted Price} + \text{Sales Tax} = 740 + 37 = 777 \]

### Step 5: Calculate the Change Phil Receives
Phil gives the sales clerk his entire summer earnings of $800. We need to calculate how much change he will receive.

\[ \text{Change} = \text{Amount Given} - \text{Total Amount} = 800 - 777 = 23 \]

### Final Answer
Phil should receive **$23** in change.

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