James decides to replace his car. He sold his $20,000 car for 80% of its value and then was able to haggle to buy a $30,000 sticker price car for 90% of its value. How much was he out of pocket?
Thoughts? Step-by-step reasoning:
He sold his car for 20000 * .8 = $16,000. He bought the new car for 30,000 * .9 = $27,000. That means he was out of pocket 27,000 - 16,000 = $11,000.
Thus, the answer is 11000.