Landon Wallin is an auto mechanic who wishes to start his own business. He will need $4300 to purchase tools andequipment. Landon decides to finance the purchase with a 60-month fixed installment loan with an APR of 4.5%.a) Determine Landon's finance charge.b) Determine Landon's monthly payment.4.1Click the icon to view the partial APR table.a) Landon's finance charge is $(Round to the nearest cent as needed.)b) Landon's monthly payment is $(Round to the nearest cent as needed.)1: Partial APR TableAnnual Percentage RateNumber of4.5%5.0%5.5%6.0%6.5%payments(Finance charge per $100 of amount financed)367.097.908.7110.3413.8317.409.52489.4610.5411.6312.736011.8613.2314.6116.00

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Asked Nov 14, 2019
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Landon Wallin is an auto mechanic who wishes to start his own business. He will need $4300 to purchase tools and
equipment. Landon decides to finance the purchase with a 60-month fixed installment loan with an APR of 4.5%.
a) Determine Landon's finance charge.
b) Determine Landon's monthly payment.
4.
1
Click the icon to view the partial APR table.
a) Landon's finance charge is $
(Round to the nearest cent as needed.)
b) Landon's monthly payment is $
(Round to the nearest cent as needed.)
1: Partial APR Table
Annual Percentage Rate
Number of
4.5%
5.0%
5.5%
6.0%
6.5%
payments
(Finance charge per $100 of amount financed)
36
7.09
7.90
8.71
10.34
13.83
17.40
9.52
48
9.46
10.54
11.63
12.73
60
11.86
13.23
14.61
16.00
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Landon Wallin is an auto mechanic who wishes to start his own business. He will need $4300 to purchase tools and equipment. Landon decides to finance the purchase with a 60-month fixed installment loan with an APR of 4.5%. a) Determine Landon's finance charge. b) Determine Landon's monthly payment. 4. 1 Click the icon to view the partial APR table. a) Landon's finance charge is $ (Round to the nearest cent as needed.) b) Landon's monthly payment is $ (Round to the nearest cent as needed.) 1: Partial APR Table Annual Percentage Rate Number of 4.5% 5.0% 5.5% 6.0% 6.5% payments (Finance charge per $100 of amount financed) 36 7.09 7.90 8.71 10.34 13.83 17.40 9.52 48 9.46 10.54 11.63 12.73 60 11.86 13.23 14.61 16.00

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Expert Answer

Step 1

Formula used:

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1-1 n PV = PMT ..(1) I = PMT xt-PV ...(2)

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Step 2

Given,

The loan amount is, PV= $4300

r = 4.5% = 0.045

t = 60 and n = 12

First, to find Landon’s monthly payment.

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Substitute PV= $4300 r = 0.045, t= 60 and n = 12 in equation (1) -60 0.045 1 -1 12 4300 PMT 0.045 12 -60 0.045 -12 1-1 12 4300 PMT 0.045 12(1-1. 00375-60 4300 PMT 0.045

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Step 3

On further simpli...

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4300 PMT(266.66666...(1-1.00375-60 4300 PMT (0.20114... 266.66666...) 4300 PMT(53.639) 4300 РMT 53.639 PMT 80.16555118 PMT 80 Thus, the Landon's monthly payment is approximately $80

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