Question

Sophia is buying her first car. She wants a Volkswagon Jetta. It costs

$21,345 plus $2,500 for upgrades like floor mats and a sunroof. The
Georgia sales tax on the car will be 7%. What will be the total of her loan
with upgrades including sales tax? Round to the nearest whole
number.
What will be the total of the car price plus upgrades? Show your work.

Answer 1

To find the total loan amount including upgrades and sales tax for the Volkswagen Jetta, add the base price and the upgrade costs to get a subtotal, then calculate the sales tax at 7% and add it to the subtotal. The total loan amount comes to $25,514 when rounded to the nearest whole number.

Step-by-step explanation:

First, we need to calculate the cost of the car including the upgrades.

The base price of the Volkswagen Jetta is $21,345, and the upgrades are an additional $2,500.

Adding these two amounts gives us a subtotal before tax:

$21,345 + $2,500 = $23,845

Next, we must calculate the sales tax to be added. In Georgia, the sales tax rate is 7%.

To find the sales tax amount, we convert the percentage to a decimal by dividing by 100 (7% = 0.07) and then multiply it by the total cost before tax:

Sales tax = $23,845 x 0.07 = $1,669.15

Adding the sales tax to the subtotal gives us the total loan amount including upgrades and tax.

We round this amount to the nearest whole number as requested:

Total loan amount = $23,845 + $1,669.15 = $25,514.15 which rounds to $25,514.