Question

A farmer shows up at a tractor dealership with $150,000 to buy a tractor priced at $148,875. The excess after buying the tractor will be used to pay for license, insurance and maintenance for the first few months. Since he is paying cash for the tractor he is able to negotiate 15% reduction off the sticker price. How much did he pay for the tractor

Answer 1

The amount that the farmer paid for the tractor, which is the net price after discounts, is $126,543.75.

What is the net price?

The net price is the difference between the sticker price and the discount of 15% received off the sticker price.

Data and Calculations:

Sticker price of tractor = $148,875

Discount reduction 15%

Amount paid = $126,543.75 ($148,875 x 1 - 0/15)

Thus, the farmer paid $126,543.75 for the tractor at the dealership.

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