Question

Sally settled on a price of $7,123 for a mid-size car. The dealer added 5% sales tax and allowed a $1,200 trade-in for Sally's old car. Sally made no down payment. How much did she need to finance.

Answer 1

If I understand the question correctly I did the following..7123 times 5% (0.05) = 356.15. 356.15 + 7123 = 7479.15 (total car price). Now I take 7479.15 - 1200 = $6279.15, Sally would need to finance $6279.15