a. To find the amount of tax paid, we need to multiply the purchase price of the car by the tax rate:
Tax paid = 4% of $24,500
Tax paid = 0.04 * $24,500
Tax paid = $980
Therefore, the amount of tax paid is $980.
b. To find the car's total cost, we need to add the purchase price to the amount of tax paid:
Total cost = Purchase price + Tax paid
Total cost = $24,500 + $980
Total cost = $25,480
Therefore, the car's total cost is $25,480.