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Mandarinka [93]
3 years ago
6

You (or your parents) purchase a new car for $19.725.00 plus 4.75% sales tax. The down payment is $2.17500 and you for your pare

nts) have an average credit rating Use the table
below to determine how much interest is accrued after the first month.
Credit
Excellent
Good
Secured
APR (%)
4.80
5.15
5.85
7.00
8.20
Unsecured
APR (%)
5.25
5.65
6.20
Average
Fair
Poor
$74.18
$195.16
$90.12
$121.09
Mathematics
1 answer:
dlinn [17]3 years ago
8 0

Answer:

  $90.12

Step-by-step explanation:

The principal amount of the loan is ...

  (sale price)(1 + sales tax rate) - (down payment)

  = $19,725×1.0475 -2175 = $18,486.94

For a secured loan, the APR charged for an average credit rating appears to be 5.85%, so the interest for the first month is ...

  i = Prt = ($18,486.94)(0.0585)(1/12)

  i = $90.12

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