Question

A used automobile dealership recently reduced the price of a used compact car by 7%. If the price before the discount was $18,700, find the discount and new price.

a) Discount: $1,309, New Price: $17,391
b) Discount: $1,309, New Price: $19,009
c) Discount: $1,309, New Price: $18,700
d) Discount: $1,309, New Price: $19,309

Answer 1

The correct discount on the used compact car is $1,309, and after applying this discount, the new price of the car is $17,391.

Step-by-step explanation:

To find the discount and the new price of the used compact car that was reduced by 7%, we start by calculating the amount of discount on the original price of $18,700. We use the following formula to calculate the discount:

Discount = Original Price × Discount Rate

Discount = $18,700 × 0.07 = $1,309

Now, to find the new price, we subtract the discount from the original price:

New Price = Original Price - Discount

New Price = $18,700 - $1,309 = $17,391

Therefore, the discount is $1,309 and the new price of the car is $17,391.