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a dealer buys a new car for $8400. How much do you have to pay for the car if the dealer makes a 20% profit and there is a 5% sales tax?

User GabyLP
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1 Answer

3 votes

Answer:

Explanation:

A dealer buys a new car for $8400. The value of the 20% profit on the car is

20/100 × 8400 = 0.2 × 8400 = $1680

If the dealer makes a 20% profit, then the selling price of the car would be

8400 + 1680 = $10080

If there is a 5% sales tax on the selling price, the value of the sales tax would be

5/100 × 10080 = 0.05 × 10080 = $

$504

Therefore, the amount that you have to pay for the car would be

10080 + 504 = $10584

User Bill Bridge
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