The williams family just bought a new van. the cost of the van is $26,857.00. state sales tax is 6% on the cost of the van. in addition, there is $250 worth of document preparation fees that must be paid. the williams family is putting down 20% and financing the rest with a home equity loan. what is the total amount that they are financing?

Solution:

Total cost of van = market cost of van + 6% sales tax on market cost + document verification fees

6% sales tax on market cost = market cost x 0.06 = 26857 x 0.06 = 1611.42 Total cost of van = 26857 + 1611.42 + 250 = 28,718.42

20% of total cost of van = 5843.684

Remaining amount = Total cost of van - initial financing = 22,974.74 dollars Hence 22,974.74 dollars is the total amount that Williams family is financing.