Question

A local car dealership is offering a sale. All new cars are on sale for 23% off the sticker price. All used cars are 10% off the sticker price. You have narrowed your decision down to two cars:

Car 1 (new) sticker price = $20,000.00
Car 2 (used) sticker price = $17,000.00
Answer the following questions.

How much money would you save on car 1?
How much money would you save on car 2?
Which car would you choose to buy and why? Justify your answer using your calculations.

Answer 1

To find out how much money you would save on car 1, you would multiply the sticker price by the discount percentage (expressed as a decimal). In this case, that would be $20,000.00 x 0.23 = $4,600.00. So you would save $4,600.00 on car 1.

To find out how much money you would save on car 2, you would multiply the sticker price by the discount percentage (expressed as a decimal). In this case, that would be $17,000.00 x 0.10 = $1,700.00. So you would save $1,700.00 on car 2.

Based on the calculations, Car 1 would be a better deal. Even though Car 2 is cheaper by $3,000.00 before discount, Car 1 saves more on discount of $4,600.00 compared to Car 2's $1,700.00. So Car 1 would be more affordable overall.