Answer:
The correct option is B.
Step-by-step explanation:
The initial cash price is $200.
The cash price reduced by 20%.
20% of $200 is
[tex]200\times \frac{20}{100}=40[/tex]
The cash reduced by $40.
The new cash price is
[tex]\$200-\$40=\$160[/tex]
The tax rate is 6.5%.
6.5% of remaining cash is
[tex]160\times \frac{6.5}{100}=10.40[/tex]
Therefore option B is correct.
