Tesla Roadster Sport Photo
-Suppose you want to get "plugged in" and buy a 2011 Tesla Roadster Sport (see the photo above),the world's leading all-electric,zero-emission car that has a 245-mile range and can be recharged in three hours.The Tesla Roadster Sport has a list price of $110,000,but you want several options (leather interior,carbon fiber hard top,electronics upgrade,metallic paint,performance wheels,and others)that will cost $20,000.An extended warranty will add an additional $5,000.However,if you put $50,000 down now and finance the balance over the next year,you will receive a dealer rebate of $3,500 off the list price.The dealer will give you a $4,000 trade-in allowance for your 2005 Honda Civic DX four-door sedan.In addition,you will have to pay a state sales tax of $10,000,an auto registration fee of $500 to the state,and a $500 destination charge to ship the car.But because the Tesla Roadster Sport is an alternative energy vehicle,you qualify for a $2,500 state rebate and a $7,500 federal tax credit! Finally,your total finance charge is $2,500.Applying the price equation,what is your final price for the Tesla Roadster Sport?

Question

Quizplus · Accepted Answer

The final price is calculated as follows: Start with the list price of $110,000, add $20,000 for options, $5,000 for the extended warranty, $10,000 for sales tax, $500 for registration, and $500 for destination charge. Subtract the $3,500 dealer rebate, $4,000 trade-in allowance, $2,500 state rebate, and $7,500 federal tax credit. Finally, add the $2,500 finance charge. The final price is $131,000.