Question

6. The Williams family just bought a new van. The cost of the van is $26,857.00. State sales tax is 6% on the cost of the van. In addition, there is $250 worth of document preparation fees that must be paid. The Williams family is putting down 20% and financing the rest with a home equity loan. What is the total amount that they are financing? * OA. $5,743.68 OB. $21,113.32 OC. $22,974.74 OD. $28,468.42 OE. $28,718.42

Answer 1

Multiply the price of the van by the sales tax:

26,857 x 0.06 = 1611.42

Add the sales tax and the cost of the fees to get the total cost:

26857 + 1611.42 + 250 = 28,718.42

Now multiply that by 20% and subtract from the total:

28,718.42 x 0.20 = 5743.68

28718.42 - 5743.68 = 22974.74

They are financing $22,974.74