Question

24. Daniel bought a new car for $15,000. He also paid two fees for the car dealership: • $450 for an extended warranty • $275 for a stereo upgrade In addition, he paid sales tax, which was 8.75% of the total cost, including the purchase price and fees. Daniel initially gave the dealership 8% of the total amount, including sales tax, as a down payment. What was the amount of the down payment?

Answer 1

The amount of down payment is $1368.08.

We add the fees to the price of the vehicle:
15000+450+275 = 15725.

We take 100% of this number and add an additional 8.75% sales tax; 100+8.75 = 108.75; 108.75% = 108.75/100 = 1.0875:
1.0875(15725) = 17100.94

He paid 8% of this total as a down payment; 8% = 8/100 = 0.08:
17100.94*0.08 = 1368.08