Give the step-by-step reasoning process and then the final answer. A department store offers a 10% discount for the amount exceeding $100 of the customer's total charge. Jaco bought a pair of shoes for $74; 2 pairs of socks that cost $2 per pair; a bag that costs $42. How much will Jaco pay for those items?
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Two pairs of socks cost $2 x 2 = $4. Jaco's total charge is $74 + $4 + $42 = $120. The amount that exceeds $100 is $120 - $100 = $20. So, Jaco has $20 x 10 / 100 = $2 discount. Therefore, Jaco will pay $120 - $2 = $118 for those items.
The final answer: 118.
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