LUANDATO wrote:Mr. Goldstein decides to buy a new car with a sticker price of $45,500. If the sales tax comes out to 5 percent of the purchase price, but Mr. Goldstein is able to negotiate a purchase price that is a 20 percent discount off the sticker price, how much sales tax does Mr. Goldstein pay?
a) $455
b) $910
c) $1560
d) $1820
e) $2275
Alternate approach:
If a car with a sticker price of $100 is discounted by 20% to $80, the resulting sales tax = (5/100)(80) = $4.
Since (resulting sales tax)/(sticker price) = 4/100 = 4%, the resulting sales tax = 4% of the sticker price.
Thus:
Mr. Goldstein's tax = (4/100)(45,500) = (4)(455) = 1820.
The correct answer is
D.
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