Question

Say that the economy is in a recession, causing vehicle prices to drop by eight percent. If your car was previously worth $25,295, what is it worth now, to the nearest dollar? a. $23,851 b. $23,421 c. $23,271 d. $22,133

Answer 1

We want an 8% drop.

The original price = $ 25295

This is represented as 100%

We want a decrease of 8%.

We get it as follows :

100 - 8 = 92% (The price now)

The price now is thus :

92/100 × 25295 = 23271.4

To the nearest dollar we have :

$ 23271

Answer 2

Given:

Drop 8%

Cost of the car = $25, 295

To find:

The current cost of the car.

Solution:

To get decrease of 8%,

25, 295 * (8 / 100)

The cost decrease = $2023

To get the current cost,

Original cost - reduced amount

25295 - 2023

The current cost = $ 23272

Hence, to the nearest dollar, $23,271

The answer is (c) $23,271