The best buy is from dealership A because the fees of dealership B is more expensive
The add-on options
For the purpose of this exercise, the add-on options to select are:
- Air-conditioning
- Sunroof
- GPS
- Bluetooth
- Power door and window
Dealership A
The total amount of the add-on options is:
Total = $1000 + $500 + $3500 + $500 + $750
Total = $6250
The inequality
This is represented using:
Base price * (1 + Tax) + Fees + Add-on total ≤ 20000
So, we have:
(1 + 6.75%) * x + 751.56 + 6250 ≤ 20000
Solve for x
We have:
(1 + 6.75%) * x + 751.56 + 6250 ≤ 20000
Evaluate the like terms
(1 + 6.75%) * x ≤ 12998.44
Divide both sides by (1 + 6.75%)
x ≤ 12176.52
The solution means that the base price of the car cannot exceed $12176.52 for dealership A
The graph of the possible base price
See attachment
Dealership B
The total amount of the add-on options is:
Total = $500 + $750 + $2750 + $750 + $500
Total = $5250
The inequality
This is represented using:
Base price * (1 + Tax) + Fees + Add-on total ≤ 20000
So, we have:
(1 + 6.75%) * x + 1524.72 + 5250 ≤ 20000
Solve for x
We have:
(1 + 6.75%) * x + 1524.72 + 5250 ≤ 20000
Evaluate the like terms
(1 + 6.75%) * x ≤ 13225.28
Divide both sides by (1 + 6.75%)
x ≤ 12389.02
The solution means that the base price of the car cannot exceed $12389.02 for dealership B
The graph of the possible base price
See attachment
Where to buy from
Buy from dealership A because the fees of dealership B is more expensive
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