Asked by mom
Round any decimals to the nearest penny. Secured Unsecured Credit APR APR Good 5.00% Use the table above for interest rate questions. If you improved your credit score to good and paid $1,500 on your purchase from question 11 (You are purchasing a car for $12,465.00 plus 5.65% sales tax. You make a $1,300.00 down payment at 6.4 % was in question # 11) how much interest could you save in the first month?
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GPT-5 mini
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Answer: You would save $14.68 in interest in the first month.
Work:
- Sales tax = 12,465.00 × 5.65% = 704.27
- Total price = 12,465.00 + 704.27 = 13,169.27
Original (Q11): down payment $1,300 → loan = 13,169.27 − 1,300 = 11,869.27
- Monthly interest at 6.4% = 11,869.27 × (0.064/12) = $63.30
New scenario: improved APR 5.00% and down payment $1,500 → loan = 13,169.27 − 1,500 = 11,669.27
- Monthly interest at 5.0% = 11,669.27 × (0.05/12) = $48.62
Interest saved first month = 63.30 − 48.62 = $14.68
Breakdown (optional):
- Saving from rate drop (6.4% → 5.0%) on the original principal = $13.85
- Additional saving from the extra $200 down payment (at the lower rate) = $0.83
- Total = $13.85 + $0.83 = $14.68
Work:
- Sales tax = 12,465.00 × 5.65% = 704.27
- Total price = 12,465.00 + 704.27 = 13,169.27
Original (Q11): down payment $1,300 → loan = 13,169.27 − 1,300 = 11,869.27
- Monthly interest at 6.4% = 11,869.27 × (0.064/12) = $63.30
New scenario: improved APR 5.00% and down payment $1,500 → loan = 13,169.27 − 1,500 = 11,669.27
- Monthly interest at 5.0% = 11,669.27 × (0.05/12) = $48.62
Interest saved first month = 63.30 − 48.62 = $14.68
Breakdown (optional):
- Saving from rate drop (6.4% → 5.0%) on the original principal = $13.85
- Additional saving from the extra $200 down payment (at the lower rate) = $0.83
- Total = $13.85 + $0.83 = $14.68
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