monthly rate = .0585/12 = .004875
outstanding balance = 22350(1.075) - 1200
= 22826.25
interest for 1st month = 22826.25(.004875)
= 111.28
amount going to principal = 475.25 - 111.28
= $363.97
Say that you (or your parents) are purchasing a used car for $22,350. The sales tax is 7.5%, the down payment is $1,200.00, and you have an average credit rating. If your first payment is $475.25, how much of the payment goes toward the principal?
The average rating is 5.85. We're supposed to factor that in somehow, but I don't know what to do. PLEASE give me a hand and type out the way you thing this should be answered.
1 answer