Answer: $39.06
Step-by-step explanation: First you have to remove 7% of 40 and subtract it because he had a discount the number you will have is 2.8 and subtract that number from 40 and you will get 37.2. After that what you No from reading the question that 5% was added as a tax So when you know what 5% of 37.2 is You will also know that the answer currently is 1.86 so you get the 1.86 and you add it to 37.2 and you will get 39.06.
