To determine the amount of loan Molly needs, we need to combine the down payment she has saved with the dealer's cash allowance and then calculate the total discount she will receive.
Step 1: Identify the down payment Molly has saved:
- Down payment = [tex]$2500
Step 2: Identify the dealer's cash allowance:
- Cash allowance = $[/tex]1500
Step 3: Calculate the total discount Molly will receive:
- Total discount = Down payment + Cash allowance
- Total discount = [tex]$2500 + $[/tex]1500
- Total discount = [tex]$4000
Step 4: Determine the total purchase price of the car (not given in the original question, so let’s assume the purchase price is P).
Step 5: Calculate the loan amount Molly needs by subtracting the total discount from the purchase price (P):
- Loan amount = Purchase price (P) - Total discount
- Loan amount = P - $[/tex]4000
To find the exact amount of loan Molly needs, you would subtract [tex]$4000 from the purchase price of the car.
For example, if the purchase price of the car were $[/tex]20,000:
- Loan amount = [tex]$20,000 - $[/tex]4000
- Loan amount = [tex]$16,000
So, the loan Molly needs is the difference between the car's purchase price and the total discount of $[/tex]4000.
