10. Sid settled on a price of $9,215 for a mid-size car. The dealer allowed a $3,100 trade-in for Sid's old truck and charged a 5% sales tax. Sid paid 20% of the remainder down and financed the rest. How much did he have to finance?
a)6,420.75
b)5,420.60
c)5,136.60
im a little confused please help!

Question

10.	Sid settled on a price of $9,215 for a mid-size car. The dealer allowed a $3,100 trade-in for Sid's old truck and charged a 5% sales tax. Sid paid 20% of the remainder down and financed the rest. How much did he have to finance? 
a)6,420.75
b)5,420.60
c)5,136.60 
im a little confused please help!

anonymous · Answer

ok so since he's trading in the car you deduct that from the original price, so 9215-3100. Then you have to deal with the sales tax so you take the earlier answer (6115) and multiply it by 1.05 because you are adding on 5% of 6115. Then you have to find 80% of that total because he only put 20% down and financed the rest. So your final equation is 6420.75*.8 and you get 5,136.60

anonymous · Answer

Thank you so much!