Landon Wallin is an auto mechanic who wishes to start his own business. He will need $4800 to purchase tools and equipment. Landon decides to finance the purchase with a 36-month fixed installment loan with an APR of 4.5%. a) Determine Landon's finance charge. b) Determine Landon's monthly payment. Click the icon to view the partial APR table. a) Landon's finance charge is $ (Round to the nearest cent as needed.). Partial APR Table Number of payments 36 48 60 Annual Percentage Rate 6.5% 4.5% 5.0% 6.0% 5.5% (Finance charge per $100 of amount financed) 8.71 7.09 7.90 9.52 9.46 10.54 11.63 12.73 11.86 13.23 14.61 16.00 Print Done 10.34 13.83 17.40 X
Landon Wallin is an auto mechanic who wishes to start his own business. He will need $4800 to purchase tools and equipment. Landon decides to finance the purchase with a 36-month fixed installment loan with an APR of 4.5%. a) Determine Landon's finance charge. b) Determine Landon's monthly payment. Click the icon to view the partial APR table. a) Landon's finance charge is $ (Round to the nearest cent as needed.). Partial APR Table Number of payments 36 48 60 Annual Percentage Rate 6.5% 4.5% 5.0% 6.0% 5.5% (Finance charge per $100 of amount financed) 8.71 7.09 7.90 9.52 9.46 10.54 11.63 12.73 11.86 13.23 14.61 16.00 Print Done 10.34 13.83 17.40 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Landon Wallin is an auto mechanic who wishes to start his own business. He will need $4800 to purchase tools and equipment. Landon decides
to finance the purchase with a 36-month fixed installment loan with an APR of 4.5%.
a) Determine Landon's finance charge.
b) Determine Landon's monthly payment.
Click the icon to view the partial APR table.
a) Landon's finance charge is $
(Round to the nearest cent as needed.)
Partial APR Table
Number of
payments
36
48
60
Annual Percentage Rate
5.5%
5.0%
6.0%
4.5%
(Finance charge per $100 of amount financed)
7.90
7.09
9.52
8.71
11.63 12.73
9.46
10.54
11.86
13.23 14.61
16.00
Print
Done
6.5%
10.34
13.83
17.40
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