Question

Jimmy had already had $500 saved up to buy a used car. How much more money does he need to buy the car, which costs $1200?

Option 1: $700
Option 2: $800
Option 3: $600
Option 4: $900

Answer 1

Jimmy needs an additional $700 to meet the total car cost of $1,200. For Marvin, if two cars are similar in all ways except price, he should opt for the more cost-effective car, which is the $4,000 one, unless the more expensive one offers a significant benefit.

Step-by-step explanation:

Jimmy needs to find out how much more money he requires to purchase a used car that costs $1,200. He already has $500 saved. To determine how much more he needs, we subtract the amount Jimmy has from the total cost of the car:

$1,200 (total cost) - $500 (amount saved) = $700

So, Jimmy needs an additional $700 to buy the car, making Option 1 the correct choice.

When shopping for a used car, as in the case of Marvin, who is presented with two cars that are similar in all other aspects but price, it's generally more cost-effective to choose the cheaper option if all else is equal. In Marvin's situation, if both cars have similar mileage, exterior appearances, and age, it would make more sense financially to choose the car that costs $4,000 over the one that costs $4,600, unless there is a specific feature or warranty that justifies the extra $600.