Question

Personal Finance: Cost of a Car The suggested list price of a new car is $24,000. The dealer’s cost is 85% of list. How much will you pay if the dealer is willing to accept $300 over cost for the car?

Answer 1

Answer: $20,700

Explanation:

Given that :

List price of car = $24,000

Dealer's cost = 85% of the list price of the car

Dealer acceptance cost = $300 over the cost

Hence, total amount to be paid :

Dealer's cost + dealer's acceptance cost

Dealer's cost = (0.85 * $24,000) = $21,400

Hence, Total cost :

$20,400 + $300 = $20,700