If the set of four bath towels is marked at $25, with a 30% discount applied, the discounted price is $25 - ($25 * 0.30) = $17.50. Adding a 5% sales tax to this amount results in an additional charge of $17.50 * 0.05 = $0.875. Therefore, the total cost will be $17.50 + $0.875 = $18.375, which rounds to approximately $18.38.
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