Amelia bought a new car with a sticker price of $9,987. If she paid 4%
sales tax, traded in her old car for $1,950, and made a 25% down
payment, calculate the total amount of the purchase price that she
financed.
a. $8,037
b. $8,358.48
c. $6,327.36
d. $6,268.86
First, we need to calculate the amount of sales tax:
$9,987 x 0.04 = $399.48
So the total cost of the car, including sales tax, is:
$9,987 + $399.48 = $10,386.48
Next, we need to subtract the trade-in value and the down payment:
$10,386.48 - $1,950 - ($10,386.48 x 0.25) = $10,386.48 - $1,950 - $2,596.62 = $5,839.86
Therefore, Amelia financed $5,839.86.
The correct answer is d. $6,268.86.