In calculating the percentage of interest spent on a car payment of $250 with $225 going to principal, what do you find?

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Prepare for the ASVAB MEPS Entrance Exam with engaging study tools and multiple-choice questions. Each question offers comprehensive hints and explanations, ensuring you're ready for your exam day with confidence.

Multiple Choice

In calculating the percentage of interest spent on a car payment of $250 with $225 going to principal, what do you find?

To calculate the percentage of interest spent on the car payment, you first need to understand the composition of the total payment. In this case, the total car payment is $250, and out of this amount, $225 is applied to the principal. This means that the remainder of the payment is considered interest.

To find the interest, subtract the principal from the total payment:

Interest = Total Payment - Principal

Interest = $250 - $225

Interest = $25

Next, to find the percentage of the total payment that is interest, you divide the interest by the total payment and then multiply by 100:

Interest Percentage = (Interest / Total Payment) x 100

Interest Percentage = ($25 / $250) x 100

Interest Percentage = 0.1 x 100

Interest Percentage = 10%

Therefore, the percentage of interest spent on the car payment is 10%.

In calculating the percentage of interest spent on a car payment of $250 with $225 going to principal, what do you find?

Prepare for the ASVAB MEPS Entrance Exam with engaging study tools and multiple-choice questions. Each question offers comprehensive hints and explanations, ensuring you're ready for your exam day with confidence.

In calculating the percentage of interest spent on a car payment of $250 with $225 going to principal, what do you find?

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