Reggie purchased a car costing $8700. As a down payment he used a $2300 insurance settlement and an amount from his savings equal to 15% of the difference between the cost of the car and the insurance settlement. if he borrowed the rest of the money needed to purchase the car, how much did he borrow?
a) $ 6,400
b) $ 6,055
c) $ 5,440
d) $ 5,095
e) $ 3,360
please help me out with the above problem.
thank you!
percentage/ratio rates!
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Option c
Total cost = $8700
Insurance settlement = $2300
difference = $6400
payment from saving = 15% of 6400 = $960
remaining money that he borrowed = $(6400-960) = $5440
Total cost = $8700
Insurance settlement = $2300
difference = $6400
payment from saving = 15% of 6400 = $960
remaining money that he borrowed = $(6400-960) = $5440
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Now total cost to be paid = 8700.
Cost from insurance = 2300.
Therefore, remaining amount to be paid = 8700-2300 = 6400.
But he has paid 15% of this using his savings, so he has to borrow 85% of 6400.
0.85*6400=5440. C IMO
Cost from insurance = 2300.
Therefore, remaining amount to be paid = 8700-2300 = 6400.
But he has paid 15% of this using his savings, so he has to borrow 85% of 6400.
0.85*6400=5440. C IMO
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Say, B = Money he borrowed, From the question we get
8700 (Cost of the car) = 2300(Insurance settlement) + ((15/100)*(8700-2300))(15 percent of difference between the cost of the car and the insurance settlement) + B
=> 8700-2300 = ((15/100)*(8700-2300))+B
=> B = (1-(15/100))*(8700-2300)
=> B = 5440, option C
8700 (Cost of the car) = 2300(Insurance settlement) + ((15/100)*(8700-2300))(15 percent of difference between the cost of the car and the insurance settlement) + B
=> 8700-2300 = ((15/100)*(8700-2300))+B
=> B = (1-(15/100))*(8700-2300)
=> B = 5440, option C
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The difference between the cost of the car and the insurance settlement is:fizzanasir wrote:Reggie purchased a car costing $8700. As a down payment he used a $2300 insurance settlement and an amount from his savings equal to 15% of the difference between the cost of the car and the insurance settlement. if he borrowed the rest of the money needed to purchase the car, how much did he borrow?
a) $ 6,400
b) $ 6,055
c) $ 5,440
d) $ 5,095
e) $ 3,360
8,700 - 2,300 = $6,400
Thus, the amount from his savings is 0.15 x 6,400 = $960.
So he had to borrow 6,400 - 960 = $5,440 to pay for the remaining cost of the car.
Answer: C
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