finances, loans, etc. 2 problems.. words. yuck!

chantelm

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Mar 15, 2011
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Ok I am totally lost on how to do everything with these math problems. I have been trying and trying and trying and my assingment will be due soon. They are
First Problem:
Sales tax on the purchase of a vehicle is calculated on the net purchase price (which is the total purchase price minus the amount allowed by a dealer for any trade-in). Rate for Colorado is:
•Colorado state tax: 2.90%
•Regional transportation district (RTD) tax: 1.20%
•Denver city tax: 3.62%
Using the information above, answer the following:
•What is the total sales tax to be paid in 2002 on the purchase of a 2002 passenger vehicle with a sales price of $17,000 and a $2,000 trade-in allowance?
•How would the sales tax be distributed between the state, the RTD, and the city?


Second Problem:
Which job should you take?:
•The first position is in Pennsylvania, earning $50,000 a year. You found a starter duplex that you can purchase with the assessed value of $75,000. Property taxes average 2.975% of the purchase price. The state sales tax is 6% on purchases, but this does not apply to food and clothing. The state income tax is 3%.
•The second offer is in Maryland. You would earn $65,000, with a starter duplex assessed at $135,000. In Maryland, property taxes are 2.4% of the purchase price of the property. The sales taxes are 1% higher than in Pennsylvania, and it also applies to food and clothing. Maryland's state income tax is 1.5% higher than Pennsylvania's.
You spend about $24,000.00

Now I have been reading my math book and I get lost on which numbers I multiply and which I don't. Where I add and what I don't add. I am hoping that I placed this question in the correct place too! :( I'm sorry if I didn't! I am just lost no matter which direction I take! I hope someone can help me. I have been trying really really hard!
 

tkhunny

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Apr 12, 2005
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chantelm said:
Ok I am totally lost on how to do everything with these math problems.
Hogwash, hogwash, and double hogwash. Take a deep breath and move one step at a time.

"•What is the total sales tax to be paid in 2002 on the purchase of a 2002 passenger vehicle with a sales price of $17,000 and a $2,000 trade-in allowance?"

Sale Price: $17,000
Trade in Allowance: $2,000
Net Price: 17,000 - 2,000 = 15,000

I am certain you can do that. What does that say for your initial comments?

Colorado Tax: 2.9% ==> 15,000 * 2.9% = 15,000 * 0.029 = A <== You tell me.
RTD Tax: 1.20% ==> 15,000 * 1.20% = 15,000 * 0.0120 = B <== You tell me.
Denver Tax: 3.62% ==> 15,000 * 3.62% = 15,000 * 0.0362 = C <== You tell me.

Total Sales Tax = A + B + C <== You tell me.

Skills required: Reading, applying a tax rate, subtraction, converting percentage to decimal, multiplication, addition

Which of these skills do you not possess?

Let's see what you get. Then show us the second one. As a general rule, don't post a probelm without SOME work showing. If you REALLY have no idea, you are in the wrong class. Back up and review more fundamental materials.
 
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