Question

Ray Cupple bought a basic car costing $26,500.00, with options costing $725.00. There is a 6% sales tax in his state and a combined $50.00 license and registration fee. What was Ray's total cost?
A. $28,865.00
B. $28,911.50
C. $27,275.00
D. $28,908.50

Answer 1

Answer: D. $28,908.50

Step-by-step explanation:

Given: Cost price of car= $26,500

Cost of options= $725

Therefore, the total cost=$26,500+ $725=$27225

As there is a 6% sales tax in his state .

⇒ Tax amount = 6% of Total cost

$=0.06\times\ 27225=\ 1,633.5$

⇒Tax amount=$1,633.5

Combine $50 licence, registration fee and tax amount to the total cost , we get

Total cost=$27225+$1,633.5+$50

∴Total cost=$28,908.5

Answer 2

Adding the basic car costing and the additional options costing, we have (26500 + 725) = $ 27 225. Since sales tax is to be included for the payment, Ray must pay for 1.06 of the basic cost. Which is equal to 1.06(27 225) = $ 28 858.50 Adding the license and registration fee into the price, we have $28 908.50. Hence, the total cost is D: $28, 908.50.