To determine the difference in interest accrued by the end of the first month, we need to calculate the interest payments for both options.
For the new car:
The price of the new car is $19,072.00.
Sales tax is 4.5% of $19,072.00, which is 0.045 * $19,072.00 = $859.24.
So the total price of the new car with sales tax is $19,072.00 + $859.24 = $19,931.24.
If you make a down payment of $1,200.00, the loan amount for the new car would be $19,931.24 - $1,200.00 = $18,731.24.
Considering a fair credit rating, we will assume an average interest rate of 3% per year.
The interest for the first month would be (3/12) * $18,731.24 = $46.83.
For the used car:
The price of the used car is $15,635.00.
Sales tax is 4.5% of $15,635.00, which is 0.045 * $15,635.00 = $703.58.
So the total price of the used car with sales tax is $15,635.00 + $703.58 = $16,338.58.
If you make a down payment of $1,200.00, the loan amount for the used car would be $16,338.58 - $1,200.00 = $15,138.58.
Considering a fair credit rating, we will assume an average interest rate of 3% per year.
The interest for the first month would be (3/12) * $15,138.58 = $37.85.
The difference in interest accrued by the end of the first month would be $46.83 - $37.85 = $8.98.
You are are debating about whether to buy a new car for $19,072.00 or a used car for $15,635.00 sales tax is 4.5% you plan to make a down payment of $1,200.00 and a credit rating is fair. What is the difference in interest accrued by the end of the first month.
3 answers
!ake it step by step with out words please
Sure, I'll break it down step by step:
For the new car:
1. Price of the new car: $19,072.00
2. Sales tax: 4.5% of $19,072.00 = $859.24
3. Total price of the new car with sales tax: $19,072.00 + $859.24 = $19,931.24
4. Down payment: $1,200.00
5. Loan amount for the new car: $19,931.24 - $1,200.00 = $18,731.24
6. Interest rate (fair credit rating): 3% per year
7. Interest for the first month: (3/12) * $18,731.24 = $46.83
For the used car:
1. Price of the used car: $15,635.00
2. Sales tax: 4.5% of $15,635.00 = $703.58
3. Total price of the used car with sales tax: $15,635.00 + $703.58 = $16,338.58
4. Down payment: $1,200.00
5. Loan amount for the used car: $16,338.58 - $1,200.00 = $15,138.58
6. Interest rate (fair credit rating): 3% per year
7. Interest for the first month: (3/12) * $15,138.58 = $37.85
The difference in interest accrued by the end of the first month would be $46.83 - $37.85 = $8.98.
For the new car:
1. Price of the new car: $19,072.00
2. Sales tax: 4.5% of $19,072.00 = $859.24
3. Total price of the new car with sales tax: $19,072.00 + $859.24 = $19,931.24
4. Down payment: $1,200.00
5. Loan amount for the new car: $19,931.24 - $1,200.00 = $18,731.24
6. Interest rate (fair credit rating): 3% per year
7. Interest for the first month: (3/12) * $18,731.24 = $46.83
For the used car:
1. Price of the used car: $15,635.00
2. Sales tax: 4.5% of $15,635.00 = $703.58
3. Total price of the used car with sales tax: $15,635.00 + $703.58 = $16,338.58
4. Down payment: $1,200.00
5. Loan amount for the used car: $16,338.58 - $1,200.00 = $15,138.58
6. Interest rate (fair credit rating): 3% per year
7. Interest for the first month: (3/12) * $15,138.58 = $37.85
The difference in interest accrued by the end of the first month would be $46.83 - $37.85 = $8.98.
3 answers