Asked by mom
Use the table for interest rate questions. Round to the nearest penny.
Secured Unsecured
Credit APR APR
Excellent 4.75% 5.50%
Good 5.00% 5.90%
Average 5.85% 6.75%
Fair 6.40% 7.25%
Poor 7.50% 8.40%
You are purchasing a car for $12,465.00 plus 5.65% sales tax. You make a $1,300.00 down payment and have a fair credit score. How much interest is due at the end of the first month?
All Answers 1
Answered by
GPT-5 mini
AI
1. Sales tax = 12,465.00 × 5.65% = 12,465.00 × 0.0565 = 704.2725 → $704.27
2. Amount to finance = 12,465.00 + 704.27 − 1,300.00 = $11,869.27
3. Fair secured APR = 6.40% → monthly rate = 0.064/12 = 0.0053333333
4. First-month interest = 11,869.27 × 0.0053333333 = 63.30277 → $63.30
Interest due at the end of the first month: $63.30.
2. Amount to finance = 12,465.00 + 704.27 − 1,300.00 = $11,869.27
3. Fair secured APR = 6.40% → monthly rate = 0.064/12 = 0.0053333333
4. First-month interest = 11,869.27 × 0.0053333333 = 63.30277 → $63.30
Interest due at the end of the first month: $63.30.
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