Question

If the price of a car is $5,600 and has a down payment of 20%, how much is the down payment, if there is a tax rate of 4%?

Answer 1

We will have the following:

If the price of the car is $5600 and has a 20% downpayment with a tax rate of 4% we will determine the downpayment quantity as follows:

`x=5600(0.20)+5600(0.20)(0.04)\Rightarrow x=1164.8`

So, the downpayment with a tax rate of 4% over the downpayment is $1164.8.