Question

PLEASE HELP I THANK PEOPLE!!!!

Jennifer has to purchase a new car and wants to finance at most 3/4 of the total cost of the car (purchase price plus interest). The interest rate for financing right now is 1%. If she has $5,000 to put down, what is the most the car can cost (round to the nearest dollar)?

A) $2,869

B) $14,423

C) $19,423

D) $24,423

Answer 1

The correct answer is C) $19,423

Explanation:

(1/4)x = 5000

x = 4*5000

x = 20000

101% ------> $20000

100% ------> y

y = (100)(20000)/101

y = 19801

so the total of the car is $19801

Answer 2

If we write as an equation the info described in the problem we have:
(1/4)x = 5000
that is, x is the total price of the car including interest rate included, because the other 3/4 will be financed. We solve for x:
x = 4*5000
x = 20000
that is, the car cost will be 20000 including interest rate that is 1%, so we are looking at the 101%, that is, 100% of the car cost plus 1% of interest rate included, so we use a rule of three simple with direct proportion to solve:

101% ------> $20000
100% ------> y
y = (100)(20000)/101
y = 19801
so the total of the car is $19801