Landon Wallin is an auto mechanic who wishes to start his own business. He will need $4000 to purchase tools and equipment. Landon decides to finance the purchase with a 60-month fixed installment loan with an APR of 6.5%. a) Determine Landon's finance charge. b) Determine Landon's monthly payment.

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
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6)
Landon Wallin is an auto mechanic who wishes to start his own business. He will need $4000 to purchase tools and equipment. Landon decides to finance the purchase with a 60-month
fixed installment loan with an APR of 6.5%.
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.)
Transcribed Image Text:Landon Wallin is an auto mechanic who wishes to start his own business. He will need $4000 to purchase tools and equipment. Landon decides to finance the purchase with a 60-month fixed installment loan with an APR of 6.5%. 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.)
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