You are purchasing a car for $12,465.000 plus 5.65% sales tax.You make a 1,300.00 down payment, and have a fair credit score. how much interest is due at the end of the first month?
To calculate the total amount financed, we need to subtract the down payment from the total cost of the car:
Total cost of the car = $12,465.00
Down payment = $1,300.00
Total amount financed = $12,465.00 - $1,300.00 = $11,165.00
Next, we need to calculate the sales tax amount:
Sales tax rate = 5.65%
Sales tax amount = 5.65% * $11,165.00 = $630.84
Total amount financed with sales tax = $11,165.00 + $630.84 = $11,795.84
Since you have a fair credit score, let's assume an interest rate of 4% per year. To calculate the interest due at the end of the first month, we need to divide the annual interest rate by 12 (for the monthly rate) and calculate the interest on the total amount financed:
Annual interest rate = 4%
Monthly interest rate = 4% / 12 months = 0.3333%
Interest due at the end of the first month = 0.003333 * $11,795.84 = $39.32
Therefore, the interest due at the end of the first month would be $39.32.