Joe has $10,000 to purchase a used car. If the sales tax is 7% and the fee for title and license plates is $200, what is the maximum amount Joe can spend for a car?
1.07x + 200 = 10000
solve for x
Let M be the maximum (dealer) price he can pay for the car, before tax and license.
M + 0.07 M + 200 = 10,000
1.07 M = 9800
Solve for M
To find the maximum amount Joe can spend for a car, we need to subtract the sales tax and the title/license fee from his budget.
1. Calculate the sales tax: $10,000 x 7% = $700
2. Add the title/license fee: $700 + $200 = $900
3. Subtract this amount from Joe's budget: $10,000 - $900 = $9,100.
Therefore, the maximum amount Joe can spend on a car is $9,100.
To calculate the maximum amount Joe can spend for a car, we need to consider the sales tax and fees on top of his budget of $10,000.
First, we calculate the sales tax on the car. The sales tax is 7% of the car's price. So, we need to find the car price that includes the sales tax. Let's denote it as 'X'.
The equation can be set up as follows:
X + 0.07X = X(1 + 0.07) = X(1.07)
Now, we need to subtract the title and license plate fees of $200 from the car price including the sales tax:
X(1.07) - $200
Finally, we want to find the maximum amount we can spend, which means we want to find the value of X for which our equation is equal to Joe's budget of $10,000:
X(1.07) - $200 = $10,000
To solve for X, we can rearrange the equation:
X(1.07) = $10,000 + $200
X(1.07) = $10,200
X = $10,200 / 1.07
Evaluating this expression, we find that X is approximately $9,579.44.
Therefore, the maximum amount Joe can spend for a car, including sales tax and fees, is approximately $9,579.44.