7
QuizMultiple Choice

Sales and Property Taxes — Quiz

Question 7 • Financial Math

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?

Answer
A
27 dollars comma 500 in State P and 26 dollars comma 750 in State Q
B
27 dollars comma 000 in State P and 26 dollars comma 750 in State Q
C
27 dollars comma 000 in State P and 27 dollars comma 750 in State Q
D
27 dollars comma 500 in State P and 26 dollars comma 250 in State Q
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A student is comparing the total cost of a car…