Question

I WILL rate, fan, medal and everything EVEN if you can't help! just please give this question your best shot!

(make sure you comment so that I know who to rate)

Answer 1

Alright. Here's the question:

4) Say that you (or your parents) 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?

The average rating is 5.85. We're supposed to factor that in somehow, but I don't know what to do. PLEASE give me a hand and type out the way you thing this should be answered.

Answer 2

not sure on that one

Answer 3

Your credit rating (AKA credit sore in the real world) affects your interest rate. Were you told the interest rate for an average credit score is 5.85%?

Answer 4

@mrm I think we we're. I'm not really sure.

Answer 5

I can help but 1st what type of interests functions is that FV or PV!! it's also little confusing because of the existing of tax rate and down payment. explain the question more please so i can help. Also what course do you take?

Answer 6

@Will.H I'm taking consumer math right now. As for the interest fuctions I have no idea really. My teacher only explained that we need to factor in, multiply and divide the numbers to get the answers.

Also, sorry for not getting back to you sooner. I'm studying some other materials.

Answer 7

So, just to make sure that im on the right way, is the question asking, how much will you have to pay monthly? also about the tax rate, since we know it's annual then why would it matter to add it in the question since we're trying to find the monthly payment.. but maybe that was there just to confuse you. HOWEVER could you tell me the name of the lesson? i can work on this question while you continue doing the other materials :)

Answer 8

It sounds like it asked "how much of the payment goes to the principal", but I think it means what you said.

Try to work it out please. I'll get back to you shortly.

Answer 9

okay. i'm 100% sure that some information are missing such as the number of the months, However i'll really do my best, and what i'm going to write will give half of the answers so it's better than nothing:)
General formula is: \[FV = PV(1+r)^2 \]
Where FV= is the sum of the principal
PV= the initial deposit which in your case it's 475.25
r= the interest rate(the percentage)
the only thing that don't exist in your question is the time. wheather it's the reqiured time to preform the last payment, or the given time that is given to you to pay up (within that time)
So since the time don't exist we are gonna have to follow this rule:
\[t=\in(FV/PV) / \in(1+r)\]
FV in your question is given as= 22350
PV in your question is given as= 475.25
r is also missing in your question all i can see is the tax rate (which i'll assume that's the required rate) so r= 7.5% which means 7.5/100 which equals = 0.072
Therefore:
\[t= \in(22350/475.25) / \in(1+0.072) = 55.4\]
that's the time in months (since the question is askng for monthly payments

Now, we almost done. we just have to find the new FV
\[FV= PV(1+r)^t\]
where FV is 22350 and r is 0.072 and t= 55 months but we need to convert that to years so divide on 12 which would be 4.6 years
\[FV= 475.25(1+0.072)^4.6 = 654$\] monthly

Again the question is missing some information but i hope that helps at least a little

Answer 10

Correction : at the 1st step the exponent is "t" not 2. sorry for the mistake.

Answer 11

whenever you have a question just tag me and i'll be there. :)