Owen settled on a price of $7,870 for a new car. The dealer had to add 4.5% sales tax to this price, but allowed a $1,200 trade-in for
Owen's old car. Although not a universal practice, please add the
sales tax to the price of the new car first and then deduct the trade-
in value. If the dealer required a 15% down payment, calculate the
amount of the purchase price that Owen financed.
a. $1,409.80
b. $1,424.20
c. $5,639.20
d. $5,970.53