Question

A car dealership is having a sale in which customers pay 85% of the retail price for a new vehicle. keith is buying a vehicle with a retail price of $36,000. he negotiates to get 9% off the sale price. how much does keith pay for the vehicle before tax?

Answer 1

First, we calculated the discounted price which would have been paid by Keith. That is the product of 85% and $36,000.
($36,000) x (85%) = $30,600
Then, after negotiating to pay 9% off the sale price, he will only need to pay 91% of the sale price. The new price would be,
($30600) x (0.91) = $27846
Thus, Keith will only need to pay $27,846.