Question

a student is comparing the total cost of a car purchase with a base price of $25,000. in state p, there is a sales tax of 6% and a local tax of 2%. in state q, the sales tax is 7% with no additional local tax. what is the total cost of the car in each state? $27,500 in state p and $26,750 in state q $27,500 in state p and $26,250 in state q $27,000 in state p and $26,750 in state q $27,000 in state p and $27,750 in state q

Explanation:

Step1: Calculate total tax for State P

Total tax rate for State P: $6\% + 2\% = 8\%$
Tax amount: $25000 \times 0.08 = 2000$
Total cost for State P: $25000 + 2000 = 27000$

Step2: Calculate total tax for State Q

Tax rate for State Q: $7\%$
Tax amount: $25000 \times 0.07 = 1750$
Total cost for State Q: $25000 + 1750 = 26750$

Answer:

$27,000 in State P and $26,750 in State Q