You (or your parents) purchase a car for $28,125.00 plus 7.5% sales tax. The down payment is $3,125.00. You have a fair credit rating. What is your new principal balance at the beginning of the second month if you pay $529.75 at the end of the first month?

Question

anonymous · Answer

$28,125.00x0.075<-(tax)= $210937.5(tax)
$28,125.00+ $210937.5(tax)=$3023437.5
$3023437.5-$312500(downpayment)=$2710937.5
$2710937.5-$529.75(-monthly payment)=$2657962.5