Automobile Dealers

By admin, October 18, 2009 2:10 am

Can I get some help with this word problem please?

Two automobile dealers, A and B, had the same car which was listed at $18,000. Dealer A offered a $1200 rebate and would negotiate a further 8% discount after rebate. Dealer B offered an 8% discount and would negotiate a further $1200 rebate.

(a) Which dealer has the lowest price?

(b) What is the lowest price?

Dealer A: 18,000 – 1,200 = 16,800 – 1,344 = 15,456
Dearer B: 18,000 – 1,440 = 16,560 – 1,200 = 15,360

Dealer B has the better deal.

Inside Look – US Auto Dealers Struggling – Bloomberg



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