Insurance companies usually charge more for a new car versus a used car. You are considering two cars. One is new and the other is used, but both cost $20,575.00. You have a good credit rating. The insurance company's base rate is $636.00/half-year for the new car and $595.00/half-year for the used car. The company gives a 5% discount for a good credit rating. #1 How much interest is due at the end of the first month for the two different cars?
#2 How much do you pay per month for insurance for each car?
#3 What is the net difference (subtraction) paid over the 6 months for insurance?