Question

Travis Whitcomb wants to purchase a new car with a $25,000 base price and options totaling$2,190. The destination charge is $643. He reads a consumer magazine article that the dealer's cost for the caer is about 91% of the base price and 87.5% of the options price. what should he estmate as the dealer's cost?

Answer 1

Explanation & calculation

• The effective base price with the new dealer is $\small 91 \%$ of the base price in Travis's desired budget.
• Therefore, the new base price is

$\qquad\qquad \begin{aligned} \small P_b&=\small \$25000\times 91\%\\ &=\small 25000\times\frac{91}{100}\\ &=\small \$22750 \end{aligned}$

• Similarly the new price for options would be

$\qquad\qquad \begin{aligned} \small P_o&=\small \$2190\times\frac{87.5}{100}\\ &=\small \$1916.25 \end{aligned}$

• However, the destination charge is not going to change. It remains fixed for the type of vehicle.

• Therefore, the estimated cost for the car would be

$\qquad\qquad \begin{aligned} \small P_{new}&=\small \$22750+\$1916.25+\$643\\ &=\small \bold{\$25309.25} \end{aligned}$