John Gray bought a basic car for $32,750.00, with options that cost $375.00. There's a 6% sales tax in his state and a combined $50.00 license and registration fee. What was John's total cost?

Question

Question 16 options:

A)

$35,165.50

B)

$35,162.50

C)

$35,140.00

D)

$33,175.00

Answer 1

To calculate John's total cost for the car, we need to follow these steps:

1. Calculate the subtotal: This includes the cost of the car and the options. \[ \text{Subtotal} = \text{Cost of Car} + \text{Cost of Options} \] \[ \text{Subtotal} = 32,750.00 + 375.00 = 33,125.00 \]

2. Calculate the sales tax: The sales tax rate is 6%. \[ \text{Sales Tax} = \text{Subtotal} \times \text{Sales Tax Rate} \] \[ \text{Sales Tax} = 33,125.00 \times 0.06 = 1,987.50 \]

3. Calculate the total cost: This includes the subtotal, sales tax, and the license and registration fee. \[ \text{Total Cost} = \text{Subtotal} + \text{Sales Tax} + \text{License and Registration Fee} \] \[ \text{Total Cost} = 33,125.00 + 1,987.50 + 50.00 = 35,162.50 \]

Therefore, John's total cost is $35,162.50.

The correct answer is B) $35,162.50.