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?
Let X stand for the cost of the used car.
Tax will be 0.07X
License and title fees = 200.
Total to spend is 10,000.
X + 0.07X + 200 = 10,000.
Solve for X
9100
To find the maximum amount Joe can spend for a car, we need to calculate the total amount of money he will spend on the car, including sales tax and fees.
First, let's calculate the sales tax amount:
Sales tax = 7% of $10,000
Sales tax = 0.07 * $10,000
Sales tax = $700
Next, let's calculate the total amount for fees:
Fees = $200
Now, let's add the sales tax and fees to the original amount Joe has:
Maximum amount Joe can spend = $10,000 + $700 + $200
Maximum amount Joe can spend = $10,900
Therefore, Joe can spend a maximum of $10,900 for a car.
To find the maximum amount Joe can spend on a car, we need to consider the sales tax and the fee for title and license plates.
First, let's calculate the sales tax amount:
Sales tax = 7% of the total amount Joe can spend
Sales tax = (7/100) × $10,000
Now, let's calculate the fee for title and license plates:
Fee = $200
To find the maximum amount Joe can spend on a car, we need to subtract the sales tax amount and the fee for title and license plates from the initial $10,000 budget:
Maximum amount = $10,000 - (Sales tax + Fee)
Let's calculate the sales tax amount:
Sales tax = (7/100) × $10,000
= 0.07 × $10,000
= $700
Plugging the values into the equation for the maximum amount:
Maximum amount = $10,000 - ($700 + $200)
= $10,000 - $900
= $9,100
Therefore, the maximum amount Joe can spend on a car is $9,100.