Question

You have decided to purchase a car for $19,000. The credit union requires a 10% down payment and will finance the balance with a 9% annual interest loan for 36 months. The sales tax in your city is 8.3%, and the license and title charges are $75. What is the total purchase price of the car including tax, license, and title?
Please select the best answer from the choices provided
A. $19,075.00
B. $18,594.30
C. $20,652.00
D. $20,577.00

Answer 1

○=> Correct option :

$\color{plum} \bold{ \tt \: \bold{C. \ 20,652.00}}$

○=> Steps to derive correct option :

Selling price of a car = $19,000

Percentage of sales tax in the city = 8.3%

Sales tax :

$= \tt \frac{8.3}{10 \times 100} \times 1900$

$= \tt \frac{8.3 \times 19000}{1000}$

$= \tt \frac{1577000}{1000}$

$\color{plum} = \tt \ 1577$

Thus, the sales tax on the car = $1577

Cost of license and title = $75

Total price of car :

= Cost price of car + Sales tax + cost of license/title

$= \tt19000 + 1577 + 75$

$\color{plum} = \tt \ 20652$

Thus, the total purchase price of the car = $20,652.00

Therefore, the correct option is (C) $20,652.00