Jose sold his car for [tex]\$5000[/tex] to his neighbor. He calculated that since he had bought his car for [tex]\$7000[/tex] a year ago, he lost [tex]\$20,000[/tex] when he sold it.

Which describes his conclusion?

A. If he sold the car for [tex]\$5000[/tex] and had bought it for [tex]\$7000[/tex], then his loss would be [tex]\$7000 - \$5000 = \$2000[/tex]. He accidentally added a 0 at the end.

B. He is correct with his conclusion.

C. He is incorrect. He lost [tex]\$5000[/tex].

D. He is incorrect. He lost [tex]\$7000[/tex].

We are given that Jose bought his car for \[tex]$7000 and sold it for \$[/tex]5000. To determine his loss, we subtract the sale price from the purchase price:

[tex]$$
\text{Loss} = 7000 - 5000 = 2000.
$$[/tex]

So, his loss is \[tex]$2000. Jose’s claim of a \$[/tex]20,000 loss occurred because he mistakenly added an extra 0.

Thus, the correct option is:

A
If he sold the car for \[tex]$5000 and had bought it for \$[/tex]7000 then his loss would be \[tex]$7000 - \$[/tex]5000 = \$2000. He accidentally added a 0 at the end.