Answer:
$20.95
Step-by-step explanation:
Credit rating is fair ⇒ Secured APR = 7.00%
<u>Loan amount</u> = sale price + tax - down payment
new car = 19072 + (19072 x 0.045) - 1200 = 18730.24
used car = 15635 + (15635 x 0.045) - 1200 = 15138.575
<u>Monthly interest</u> = loan amount x 0.07 x 1/12
new car = 18730.24 x 0.07 x 1/12 = 109.26
used car = 15138.575 x 0.07 x 1/12 = 88.31
Difference = 109.26 - 88.31 = $20.95
