Question

I'm Failing in a few days if I cant get help with this.

Answer 1

1) a) You purchase a new car for $16,725.00 plus 6.15% sales tax. The down payment is $1,400.00 and you have an average credit rating. How much interest is accrued after the first month?

Average Secured-5.85 Unsecured- 6.20

1) b) You purchase a new car for $16,725.00 plus 6.15% sales tax. The down payment is $1,400.00 and you have an average credit rating. If you improved your credit score to good and paid $2,100 on your purchase, how much interest could you save in the first month

2) You purchase a used car for $17,645.00 plus 4.75% sales tax. The down payment is 10% of the total cost and you have an excellent credit rating. What is your principal balance at the start of the loan?

Excel. secured- 4.80 unsecured- 5.25

3) You are debating about whether to buy a new car for $19,242.00 or a used car for $12,425.00. Sales tax is 6.5%. You (or your parents) plan to make a down payment of $1,200.00 and your credit rating is fair. What is the difference in interest accrued by the end of the first month? *

Fair secured-7.00 unsecured-7.65

4) Say that you are purchasing a used car for $22,350. The sales tax is 7.5%, the down payment is $1,200.00, and you have an average credit rating. If your first payment is $475.25, how much of the payment goes toward the principal?

Ave. Secured 5.85 Unsecured 6.75

Answer 2

Anybody?

Answer 3

I might be wrong, but I can't solve this without knowing the length of the loan. How many months to pay off the loan? 36, 48 60 months?

Answer 4

It doesn't say, but I do know that the answer to one is $25654.48

Answer 5

the first question has two parts though.

Answer 6

Okay, I must be wrong about the length of the loan. But with the answer I might be able to figure it out. Hold on.

Answer 7

371.41?

Answer 8

Opps! My mistake you did what I said but I forgot to add the cost of the car into my equation. Let me fix it.

Answer 9

ok

Answer 10

got you

Answer 11

Now you need to calculate the interest for the first month with the secured interest rate.

16353.59 * 0.0582/12 = __________ ?? I got $79.72 in interest cost

Answer 12

I see

Answer 13

What about number 2?

Answer 14

Do you understand how to do 1b ?

Answer 15

I think I do.

Answer 16

Ok on to number 2

Answer 17

So

Answer 18

167.63?

Answer 19

That's what I got.

Answer 20

No let me see if I wrote it wrong again. I think I did it right.

Answer 21

Ok

Answer 22

I see

Answer 23

I think I understand 2

Answer 24

what about 3?

Answer 25

Three is just like 1b with different values and interest rates and calculating the difference in the first months interest.

It is time for you to try again and show me your work and I will try to guide you through the steps.

Answer 26

Alright.

Answer 27

I got 87.55 for 3?

Answer 28

Calculate the total cost of the car...

Cost + cost times sales tax - the down payment

Take the total cost of the car (the principle) times the MONTHLY interest rate...

Principle * IR/12 = first months interest

Do this twice, once for the new car and once for the used car

First months Interest New Car - First months interest Used car = _______ ?

Answer 29

6817?

Answer 30

I got a little less than half of your value. You could be correct, but I can't tell where my mistake is if you don't show your work.

Answer 31

Oh ok. i'll just show my work.

Answer 32

What is the 6817 answer for?

Answer 33

When you said "First months Interest New Car - First months interest Used car = _______" I just subtracted the price of the new car from the old car

Answer 34

$19,242.00-$12,425.00=6817

Answer 35

No that is just the difference in the total value of the cars.

Answer 36

I see

Answer 37

Alright, I think I see how to get this

Answer 38

ok bye

Answer 39

Thanks for your help.

Answer 40

Can anyone else help me? I only have two more questions.