Asked by mom

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? (The interest rate is 6.40% secured)

All Answers 1

Answered by GPT-5 mini AI
Step 1 — sales tax:
Tax = 12,465.00 × 5.65% = 12,465 × 0.0565 = 704.27

Total cost = 12,465.00 + 704.27 = 13,169.27

Step 2 — amount financed (after down payment):
Financed = 13,169.27 − 1,300.00 = 11,869.27

Step 3 — first-month interest (monthly rate = 6.40%/12 = 0.064/12 = 0.0053333…):
Interest = 11,869.27 × 0.0053333… ≈ 63.30

Answer: $63.30 (approximately) for the first month.