Question

If price of a car is $5,900, and the down payment is 15%, what is the amount of the down payment if the tax rate is 8.5%?

Answer 1

First, calculate the price of the car WITH the tax rate.

8.5% → 0.085

$5900 × 0.085 = $501.50

Add the tax, to the original price.

$5900 + $501.50 = $6401.50

Next, get the 15% downpayment

15% → 0.15

$6401.50 × 0.15 = $960.225

Rounding off to the nearest cent, the downpayment is equal to $960.23.