Question

You are purchasing a car for $12,465.00 plus 5.65% sales tax. You make a $1,300.00 down payment and have a fair credit score. How much interest is due at the end of the first month?

a) $65.14
b) $63.30
c) $75.37
d) $70.96

Answer 1

To calculate the monthly interest due on a car loan, the interest rate and loan terms must be known. Without the interest rate, the specific question about the interest due cannot be answered accurately.

Step-by-step explanation:

The question pertains to calculating the amount of interest due at the end of the first month of a car purchase with a given sales tax and down payment, assuming the car is financed and the interest is applicable. However, to answer this question accurately, more information is needed, such as the interest rate on the car loan and the terms of repayment. Without the interest rate, we cannot calculate monthly interest. Typically, the amount of interest due each month would be calculated based on the remaining balance after the down payment has been subtracted from the purchase price, and the interest has been applied.