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You (or your parents) purchase a new car for $19,725.00 plus 4.75% sales tax. The down payment is $2,175.00 and you (or your parents) have an average credit rating. Use the table below to determine how much interest is accrued after 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



$90.12


$74.18


$121.09


$195.16

Respuesta :

The amount of interest i.e. accrued after the first month is $90.12.

  • The calculation is as follows:

The cost of car = [tex]19,725\times (1.0475)[/tex]

= 20,661.9375

The Down payment is 2,175

Now

balance amount, P =  20661.9375 - 2175

= 18,487

And, the interest for an average rating of a new car is 5.85%

So the interest accrued in the first month is

[tex]= 18,487\times 0.0585\div 12[/tex]

= $90.12

Learn more: https://brainly.com/question/1114543?referrer=searchResults

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