3. mr. mooney wants to trade - in his vehicle. at won ton dealership, he finds the perfect car for him. the…

3. mr. mooney wants to trade - in his vehicle. at won ton dealership, he finds the perfect car for him. the dealership says their final sale price for the new car is $45,000. mooney has $8,000 cash towards the vehicle down payment. the state tax is 10%. the dealer charges a documentation fee of $85, a destination fee of $500, and a dealer prep fee of $300. dmv fees are $205. the dealership also values mr. mooneys trade - in to deduct from the new car at $10,500. how much will he have to pay for the vehicle? (down payments are calculated after tax. trade - ins are calculated before the tax.)

3. mr. mooney wants to trade - in his vehicle. at won ton dealership, he finds the perfect car for him. the dealership says their final sale price for the new car is $45,000. mooney has $8,000 cash towards the vehicle down payment. the state tax is 10%. the dealer charges a documentation fee of $85, a destination fee of $500, and a dealer prep fee of $300. dmv fees are $205. the dealership also values mr. mooneys trade - in to deduct from the new car at $10,500. how much will he have to pay for the vehicle? (down payments are calculated after tax. trade - ins are calculated before the tax.)

Answer

Explanation:

Step1: Calculate the amount to be taxed

The final sale price of the new car is ( $45000). The trade - in is ( $10500). So the amount to be taxed is (45000 - 10500=$34500)

Step2: Calculate the state tax

The state tax rate is (10%). So the state tax is (0.1\times34500=$3450)

Step3: Calculate the total of all fees

The destination fee is ( $500), the dealer prep fee is ( $300), the DMV fees are ( $205), and the documentation fee is ( $85). The total of these fees is (500 + 300+205 + 85=$1090)

Step4: Calculate the total cost before considering cash

The amount to be taxed plus the total fees is (3450+1090=$4540)

Step5: Calculate the down - payment

The cash towards the vehicle is ( $8000). So the down - payment is (4540-(8000 - 10500)) (since the trade - in is already accounted for in the tax calculation). First, (8000-10500=- 2500). Then (4540-(-2500)=4540 + 2500=$7040)

Answer:

($7040)