Moses is solving the problem below. A box of spaghetti at the grocery store is purchased for $1.60 wholesale and is marked up by 60 percent. Then, the store marks down the item by 20 percent. A customer wants to buy three boxes of spaghetti. How much will the customer pay, including paying 8 percent sales tax? Round your answer to the nearest cent.
Look at the table below.
Steps
Moses’s work

Step 1

1 dollar and 60 cents (1.6) = 2 dollars and 56 cents

Step 2

2 dollars and 56 cents (0.80) = 2 dollars and 5 cents

Step 3

2 dollars and 5 cents (3) = 8 dollars and 20 cents

Step 4

8 dollars and 20 cents (1.08) = 8 dollars and 86 cents

In which step did Moses first make a mistake in his work?

Step 1

Step 2

Step 3

Step 4

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