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 6.40%credit score. how much interest is due at the end of the first month?
First, we need to calculate the total cost of the car after adding the sales tax:
$12,465.00 + ($12,465.00 * 5.65%) = $12,465.00 + $703.42 = $13,168.42
Next, we need to subtract the down payment from the total cost to find the amount financed:
$13,168.42 - $1,300.00 = $11,868.42
To calculate the interest due at the end of the first month, we first need to find the monthly interest rate by dividing the annual interest rate by 12:
6.40% / 12 = 0.5333%
Next, we calculate the interest amount due by multiplying the amount financed by the monthly interest rate:
$11,868.42 * 0.5333% = $63.28
Therefore, the interest due at the end of the first month is $63.28.