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A book costs £10.
Delivery is £2.50
Tax is 20%.
If I add up the cost of the book and delivery and then add tax it will cost (£10 + £2.50) + 20% of the total.
=£12.50 + 20% = £12.50*1.2 = £15.00
If I add tax to the cost of the book, and then add delivery, it will cost (£10 + 20%) + £2.50 = £10*1.5 + £2.50 = £12.00 + £2.50 = £14.50
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