Jack paid $ 23000 for the ring.
Solution:
Given that, Jack Matthew bought a new diamond ring for $20,000
Sales tax is 5% with a 10% excise tax
To find: total price including taxes
Given that sales tax is 5% of 20,000
[tex]\begin{array}{l}{\text { Sales tax }=5 \% \times \text { cost price }} \\\\ {\text { Sales tax }=\frac{5}{100} \times 20000=5 \times 200=1000}\end{array}[/tex]
Also given that excise tax is 10%
[tex]\begin{array}{l}{\text { Excise tax }=10 \% \times \text {cost price }} \\\\ {\text { Excise tax }=\frac{10}{100} \times 20000=10 \times 200=2000}\end{array}[/tex]
Total price = cost price + sales tax + excise tax
Total price = 20,000 + 1000 + 2000
Total price = 23000
Hence, jack paid $ 23000 for the ring.
