You (or your parents) are debating about whether to buy a new car for $19,072.00 or a used car for $15,635.00. Sales tax is 4.5%

Question

4 years ago

9

You (or your parents) are debating about whether to buy a new car for $19,072.00 or a used car for $15,635.00. Sales tax is 4.5%

. You (or your parents) plan to make a down payment of $1,200.00 and your credit rating is fair. Use the table below to determine the difference in interest accrued by the end of the first month.
Secured Unsecured
Credit APR (%) APR (%)
Excellent 4.80 5.25
Good 5.15 5.65
Average 5.85 6.20
Fair 7.00 7.65
Poor 8.20 9.15

Mathematics

2 answers:

enyata [817] · Answer 1 · 2022-01-11T16:43:35+03:00

enyata [817]4 years ago

8 0

Answer:

The correct answer is $20.95

Step-by-step explanation:

docker41 [41] · Answer 2 · 2022-01-11T14:39:04+03:00

Secure Unsecured
Credit APR APR
FAIR 7.00 7.65

Brand new Used Car
Purchase Price: 19,072 15,635
Sales Tax 4.5%
(price x 4.5%) 858.24 703.58
Total price 19,930.24 16,338.58
Downpayment (1,200.00) (1,200.00)
For financing 18,730.24 15,138.58

Interest: Brand New:
Secured : 18,730.24 * 7% * 1/12 = 109.26
Unsecured: 18,730.24 * 7.65% * 1/12 = 119.41

Interest: Used Car
Secured: 15,138.58 * 7% * 1/12 = 88.31
Unsecured: 15,138.58 * 7.65% * 1/12 = 96.51