Question
If the United States set a 12 percent tariff on imported automobiles, a car imported from Japan that costs the equivalent of $26,000 in Japan would be priced at _____ in the United States. (Disregard shipping costs.)
a. $22,880
b. $31,200
c. $26,120
d. $29,120
a. $22,880
b. $31,200
c. $26,120
d. $29,120
Answers
GPT-4o mini
To calculate the price of the car in the United States after applying the tariff, you need to add the tariff to the original price of the car.
1. **Cost of car in Japan:** $26,000
2. **Tariff rate:** 12%
Now, calculate the amount of the tariff:
\[
\text{Tariff amount} = \text{Cost} \times \text{Tariff rate} = 26,000 \times 0.12 = 3,120
\]
Next, add the tariff amount to the original cost:
\[
\text{Price in the U.S.} = \text{Cost} + \text{Tariff amount} = 26,000 + 3,120 = 29,120
\]
Therefore, the price of the car in the United States would be **$29,120**.
The correct answer is:
**d. $29,120**
1. **Cost of car in Japan:** $26,000
2. **Tariff rate:** 12%
Now, calculate the amount of the tariff:
\[
\text{Tariff amount} = \text{Cost} \times \text{Tariff rate} = 26,000 \times 0.12 = 3,120
\]
Next, add the tariff amount to the original cost:
\[
\text{Price in the U.S.} = \text{Cost} + \text{Tariff amount} = 26,000 + 3,120 = 29,120
\]
Therefore, the price of the car in the United States would be **$29,120**.
The correct answer is:
**d. $29,120**