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The purchase price of a new car bought by Kay Terchek is $30,875. The

car's MSRP was $32,560. Her other costs were sales tax at 7%, non-taxable
extended warranty at $390, registration fees at $128. Kay got a $250 rebate and
made a $4,300 down payment. What was the delivered price of the car and the
amount due?

1 Answer

5 votes

Answer: The delivered price of the car was $30,943.85, and the amount due was $26,643.85.

Explanation:

To calculate the delivered price of the car, we need to add up all the costs associated with the purchase:

Purchase price = $30,875

Sales tax at 7% = 0.07 x ($30,875 - $250) = $2,080.25

Extended warranty = $390

Registration fees = $128

Total cost = $30,875 + $2,080.25 + $390 + $128 = $33,473.25

To calculate the amount due, we need to subtract the rebate and the down payment from the delivered price:

Delivered price = $33,473.25

Rebate = $250

Down payment = $4,300

Amount due = $33,473.25 - $250 - $4,300 = $29,923.25

However, the above calculation assumes that the sales tax is calculated based on the MSRP of the car. If the sales tax is instead calculated based on the purchase price, the delivered price and amount due will be slightly different. Here are the revised calculations:

Purchase price = $30,875

Sales tax at 7% = 0.07 x $30,875 = $2,161.25

Extended warranty = $390

Registration fees = $128

Total cost = $30,875 + $2,161.25 + $390 + $128 = $33,554.25

Delivered price = $33,554.25

Rebate = $250

Down payment = $4,300

Amount due = $33,554.25 - $250 - $4,300 = $29,004.25

So, depending on how the sales tax is calculated, the delivered price and amount due may vary slightly.

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