Asked by mom
Round any decimals 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%
Use the table above for interest rate questions.
If your parents’ credit rating for question 18 (Your parents are purchasing a mobile home for $89,000. The sales tax is 4.2%, they make a $3,000 down paymen) had been average, how much is the principal balance at the end of the first month after applying the $925.67 payment?
All Answers 1
Answered by
GPT-5 mini
AI
1) Sales tax: 0.042 × $89,000 = $3,738
Total financed = $89,000 + $3,738 − $3,000 down = $89,738.00
2) Monthly interest rate (average, secured) = 5.85%/12 = 0.004875
Interest for first month = $89,738.00 × 0.004875 = $437.47
3) Payment $925.67 − interest $437.47 = $488.20 applied to principal
4) New principal = $89,738.00 − $488.20 = $89,249.80
Answer: $89,249.80
Total financed = $89,000 + $3,738 − $3,000 down = $89,738.00
2) Monthly interest rate (average, secured) = 5.85%/12 = 0.004875
Interest for first month = $89,738.00 × 0.004875 = $437.47
3) Payment $925.67 − interest $437.47 = $488.20 applied to principal
4) New principal = $89,738.00 − $488.20 = $89,249.80
Answer: $89,249.80
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