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?
a. $54,000
b. $89,000
c. $110,000
d. $131,000
e. $166,000