Mr. goldstein decides to buy a new car with a sticker price of $45,500. if the sales tax comes out to 5 percent of the purchase price, but mr. goldstein is able to negotiate a purchase price that is a 20 percent discount off the sticker price, how much sales tax does mr. goldstein pay?

The sales tax paid by Mr. Goldstein is $1,820

Explanation:

Data provided:

Sticker price of the car = $45,500

Sales tax for the car = 5 percent of the purchase price

Discount offered after negotiation = 20 percent discount off the sticker price

Therefore,

The amount of discount offered = 20% of $45,500

or

= 0.20 × $45,500

= $9,100

Thus,

The purchase price for the car = Sticker price - discount

= $45,500 - $9,100

= $36,400

Now,

The sales tax = 5% of the purchase price

= 5% of $36,400

= 0.05 × $36,400

= $1,820

Hence,

The sales tax paid by Mr. Goldstein is $1,820

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