Calculating Prices for Hotel Room
Tara looks up hotel room prices for a holiday. A hotel has a 25% off sale on its prices. A VAT charge of 20% must be added on at the end of the transaction after any discount. If the regular price of a room is £70 per night, how much will Tara pay for 4 nights?
With a 25% off sale, the price of the room will be reduced by: 0.25 x £70 = £17.50
So the discounted price of the room per night will be: £70 – £17.50 = £52.50
After the discount, Tara will need to pay for 4 nights, so the total cost before VAT will be: 4 nights x £52.50 per night = £210
Then, Tara needs to add 20% VAT to the total discounted price to get the final cost. This can be calculated by multiplying the total discounted price by 1.20: £210 x 1.20 = £252
Therefore, Tara will pay £252 for 4 nights at the hotel after the discount and VAT are applied.
