A consumer values a car at $525,000 and a producer values the same car at $485,000. If sales tax is 8% and is levied on the seller, then the seller's bottom-line price is (rounded to the nearest thousand)

a) 527,000

b) 524,000

c) 525,000

d) 500,000

b) 524,000.

Explanation:

The producer values the car at $485,000, that it means that the seller bottom-line price is the $485,000 multiply by the sales tax. Then the total bottom-line price is as follows: 485,000*0.08 + 485,000 = 38,000 + 485,000 = 523,800. The closest rounded value is 524,000