Buying a toaster requires an insurance plan that is 20% of the MSRP, plus a mandatory state tax rate of 50% after the insurance plan calculation. Jon chooses to buy a toaster that costs $30 at MSRP. What is the total he must pay? Give me reasons, before answering the question
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The insurance plan costs $30 * 0.2 = $6. The pre - state tax total is $30 + $6 = $36. State tax will be $36 * 0.5 = $18. Jon needs to pay $18 + $36 = $54 for his new toaster. So the final answer is 54.
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