Give the step-by-step reasoning process and then the final answer. Liz sold her car at 80% of what she originally paid. She uses the proceeds of that sale and needs only $4,000 to buy herself a new $30,000 car. How much cheaper is her new car versus what she originally paid for her old one?
If Liz needs only $4,000 to buy a new $30,000 car, that means she has $30,000 - $4,000 = $26,000 from the proceeds of selling her old car. If she sold her car at 80% of what she originally paid for and sold it for $26,000 then she originally paid $26,000 / 80% = $32,500 for her old car. If she paid $32,500 for her old car and the new one is $30,000 then, the new one is $32,500 - $30,000 = $2,500 cheaper.
The final answer: 2500.