Mr. Goldstein decides to buy a new car with a sticker price of $45,500. If the sales tax comes out to 5 percent of the purchase price, but Mr. Goldstein is able to negotiate a purchase price that is a 20 percent discount off the sticker price, how much sales tax does Mr. Goldstein pay?

The sales tax paid by Mr. Goldstein is $1,820

Explanation:

Data provided:

Sticker price of the car = $45,500

Sales tax for the car = 5 percent of the purchase price

Discount offered after negotiation = 20 percent discount off the sticker price

Therefore,

The amount of discount offered = 20% of $45,500

or

= 0.20 * $45,500

= $9,100

Thus,

The purchase price for the car = Sticker price - discount

= $45,500 - $9,100

= $36,400

Now,

The sales tax = 5% of the purchase price

= 5% of $36,400

= 0.05 * $36,400

= $1,820

Hence,

The sales tax paid by Mr. Goldstein is $1,820