Question

Say that you (or your parents) are purchasing a new car for $22,358. The sales tax is 6.45%, the down payment is 10% of the total cost, and you have a poor credit score. What is the lowest amount of interest you could pay at the end of the first month?

Answer 1

22,358+(22,358×0.0645)
=23,800.091

23,800.091−(23,800.091
×0.10)
=21,420.0819

21,420.0819÷12
=1,785.006825

1,785.006825×0.075
=133.88