Question

16. Conrad bought a car for $20,000 before tax. How much would his total cost be, including the state sales tax rate, in: a. Los Angeles, California? b. Dallas, Texas? c. Chicago, Illinois?

Answer 1

Given data:

The cost of the car is C=$20,000.

(a)

The final prize after sales tax in Los angeles is,

$\begin{gathered} F=(1+\frac{9.5}{100})C \\ =(1.095)(20,000) \\ =21,900 \end{gathered}$

The final prize after sales tax in California is,

$\begin{gathered} F^{\prime}=(1+\frac{7.25}{100})C \\ =(1.0725)(20,000) \\ =21,450 \end{gathered}$

(b)