A student is comparing the total cost of a car purchase with a base price of $⁢25,000 In State P, there is a sales tax of 6% and a local tax of 2% In State Q, the sales tax is 7% with no additional local tax. What is the total cost of the car in each state?

In State P, the combined tax rate is 6% + 2% = 8%, so the tax is 0.08 × $25,000 = $2,000 and the total is $27,000. In State Q, 7% tax is 0.07 × $25,000 = $1,750, making the total $26,750. Therefore, choice C is correct.

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