Question

A car costs $5,100.00 with a tax rate of 6.5%, and the percent of down payment was 10%. You are trading in a vehicle worth $600.00. How much will the amount of the down payment be?

Answer 1

The cost of the car is originally $5100. The tax rate is given as 6.5%. Therefore, the total cost of the car would be;

`\begin{gathered} \text{Cost}+\text{Tax}=\text{Total cost} \\ 5100+(5100*0.065)=\text{Total cost} \\ 5100+331.5=\text{Total cost} \\ \text{Total cost}=5431.5 \end{gathered}`

The percent of down payment was 10%. This means at the point of making your down payment you would pay;

`\begin{gathered} \text{Down payment}=0.1*(Total\text{ cost}-\text{Trade-in)} \\ \text{Down payment}=0.1*(5431.5-600) \\ \text{Down payment}=0.1*4831.5 \\ \text{Down payment}=483.15 \end{gathered}`

Note that, the amount due would be cost of the car plus tax. Then after that, we can deduct the amount of the car traded in for the new one. The difference is now the amount to be paid for the car altogether. Since the down payment is 10%, we can now calculate the 10% of this final figure.

ANSWER:

The down payment would be $483.15