Question

The amount of sales tax on a new car

varies directly to the purchase price of
the car. If a $25,000 car pays $1,750 in
sales taxes, what's the purchase price
of a new car with $3,500 in sales tax?
New Purchase Price = [?]
Enter

Answer 1

$50,000

Explanation:

Let :

sales tax = t

Purchase price = p

Sales tax α purchase price

t = kp

Where. K is the constant of proportionality

When p = $25000 ; t = 1750

Using this we can obtain the value of k

1750 = 25000k

k = 1750/25000

k = 0.07

Purchase price of car with $3500 sales tax;

3500 = 0.07p

p = 3500 / 0.07

p = $50,000