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Suri has decided to buy a car. The car has a MSRP of $24500. She wishes to get several upgrades that will cost $2654. She has negotiated a $2800 discount from the MSRP. Freight costs $800. She must pay a fuel-efficiency tax of $500 and an air conditioner tax of $90. The dealer is charging her a non-taxable administration fee of $45. Licence fees (non-taxable) cost $80, and gas (also non-taxable) costs $50. Calculate the total amount, including taxes, that Suri must pay the dealership. (Note: Tax is 13%.)

2 Answers

4 votes

Final answer:

To calculate the total amount, including taxes, that Suri must pay the dealership, add up all the costs: the cost of the car after discounts and upgrades, taxes, and various fees. The total amount Suri must pay is $29,085.02.

Step-by-step explanation:

To calculate the total amount, including taxes, that Suri must pay the dealership, we need to add up all the costs. First, let's calculate the total cost of the car with upgrades and discounts. The MSRP of the car is $24,500, and Suri gets a $2,800 discount, so the cost after discount is $24,500 - $2,800 = $21,700. Then, she adds the cost of upgrades, which is $2,654. So, the total cost before taxes is $21,700 + $2,654 = $24,354.

Next, we need to calculate the tax. The tax rate is 13%, so we multiply the total cost before taxes by 0.13 to find the tax amount: $24,354 * 0.13 = $3,166.02.

Finally, we add the tax amount and all the other fees to get the total amount Suri must pay the dealership: $24,354 + $3,166.02 + $800 + $500 + $90 + $45 + $80 + $50 = $29,085.02. Therefore, Suri must pay the dealership a total of $29,085.02 including taxes.

User Haysclark
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8.4k points
2 votes

Final answer:

Suri must pay a total of $29,265.72 for the car, including a 13% tax on the taxable amount, which factors in the MSRP, upgrade costs, discounts, and additional fees.

Step-by-step explanation:

To calculate the total amount Suri must pay for the car, including taxes, we need to add the cost of the car with upgrades, subtract any discounts, add additional costs, and then apply the tax.


First, let's calculate the taxable amount:

MSRP + Upgrade costs + Freight costs + Fuel-efficiency tax + Air conditioner tax - Negotiated discount = Taxable amount

$24,500 + $2,654 + $800 + $500 + $90 - $2,800 = $25,744

Now, let's calculate the tax and then the total:

Tax (13% of the taxable amount): 0.13 * $25,744 = $3,346.72

Total before non-taxable fees: Taxable amount + Tax = $25,744 + $3,346.72 = $29,090.72

Add non-taxable fees (Administration + Licence fees + Gas):

$29,090.72 + $45 + $80 + $50 = $29,265.72

So, the total amount that Suri must pay, including taxes, is $29,265.72.

User Lasantha Bandara
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7.9k points