Jocelyn wants to purchase a car with a listed price of \$25,000. If she needs to make a 20\% down payment, how much will she need to save for the down payment, and how much will she need to borrow?

• A. Down payment: \$10,000; Amount to borrow: \$15,000
• B. Down payment: \$5,000; Amount to borrow: \$20,000
• C. Down payment: \$7,500; Amount to borrow: \$17,500
• D. Down payment: \$2,500; Amount to borrow: \$22,500

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the problem. Jocelyn wants to purchase a car priced at \$25,000. She needs to make a 20% down payment, and the remaining amount will be borrowed. The task is to calculate the down payment and the borrowing amount.
2. Step 2: Calculate the down payment. The formula for the down payment is: Down Payment = Listed Price × Down Payment Percentage. Using MathML, the formula can be expressed as: $\mathrm{Down Payment}=\mathrm{Listed Price}\times \mathrm{Down Payment Percentage}$
3. Step 3: Substitute the values into the formula. The listed price is \$25,000, and the down payment percentage is 20% (or 0.20 in decimal form). Using MathML, this substitution can be expressed as: $\mathrm{Down Payment}=25000\times 0.20$
4. Step 4: Calculate the borrowing amount. The formula for the borrowing amount is: Borrowing Amount = Listed Price - Down Payment. Using MathML, the formula can be expressed as: $\mathrm{Borrowing Amount}=\mathrm{Listed Price}-\mathrm{Down Payment}$
5. Step 5: Substitute the values into the borrowing formula. The listed price is \$25,000, and the down payment is the value calculated in Step 3. Using MathML, this substitution can be expressed as: $\mathrm{Borrowing Amount}=25000-\mathrm{Down Payment}$