Texas charges 8.5 percent for sales tax. Minnesota doesn’t charge sales tax on clothing. A resident of Texas is going on a trip to Minneapolis next week and is considering buying some new clothes. However, the traveler will need an extra suitcase to bring the clothing home and the airline charges an extra $25 to check another suitcase on the plane. The traveler will spend $300 for the new clothes in either state.
How much will you spend if you buy the clothes in Texas?
How much would the traveler spend?