The interest in the first month is given as $ 97.1. The principal balance in the second question is $15,030.02
<h3>How to solve for the interest in the first month</h3>
1. We have to solve for the cost of the car
This would be = 19,725*(1.0475)
= 20,661.9375
There is a Down payment = 2,175
balance would be 20661.9375-2,175 = 18,486.94
average rating interest of new car = 6.30%
So the interest accrued in first month = 18,486.94x0.063/12 = $ 97.1
2. cost = 15867
sales tax = 5.25%
10 percent down payment
5.25/100 = 0.0525
cost of car = 15867 + (15867 * 0.0525)
= 16700 dollars
10% of 16700 dollars
= 1670 dollars
principal balance = 16700 - 1670
= $15,030.02
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