Question

You are purchasing a car for $12,985.00 with the help of your parents. How much interest is saved in the first month by you using their good credit rating compared to your fair credit rating, using the table above?
(1 point)
Responses

$14.61
$14.61

$54.10
$54.10

$15.15
$15.15

$69.25

Answer 1

To determine how much interest is saved in the first month by using your parents' good credit rating compared to your fair credit rating, we need the interest rates associated with both ratings. Since the details such as the interest rates are not provided in your question, I will guide you on how to calculate this with the rates:

1. **Calculate the Monthly Interest for Good Credit:**
- Determine the interest rate for good credit (let's denote it as \( R_g \)).
- Monthly Interest (Good Credit) = \( \frac{R_g}{12} \times 12,985 \)

2. **Calculate the Monthly Interest for Fair Credit:**
- Determine the interest rate for fair credit (let's denote it as \( R_f \)).
- Monthly Interest (Fair Credit) = \( \frac{R_f}{12} \times 12,985 \)

3. **Calculate the Interest Saved:**
- Interest Saved = Monthly Interest (Fair Credit) - Monthly Interest (Good Credit)

4. **Select the Response:**
- Compare the calculated interest saved to the options you provided.

Since I do not have access to the actual interest rates, please fill in the rates and compute the interest saved following these steps. If you have the table with the rates, you can substitute the values directly and perform the calculations accordingly.