Landon Wallin is an auto mechanic who wishes to start his own business. He will need $4900 to purchase tools and equipment. Landon decides to finance the purchase with a 36-month fixed installment loan with an APR of 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.) b) Landon's monthly payment is $ (Round to the nearest cent as needed.) ***

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 23PROB
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Landon Wallin is an auto mechanic who wishes to start his own business. He will need $4900 to purchase tools and equipment. Landon decides to finance the
purchase with a 36-month fixed installment loan with an APR of 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.)
b) Landon's monthly payment is S
(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 $4900 to purchase tools and equipment. Landon decides to finance the purchase with a 36-month fixed installment loan with an APR of 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.) b) Landon's monthly payment is S (Round to the nearest cent as needed.) ...
Number of
payments
36
48
60
Annual Percentage Rate
4.5%
5.0% 5.5% 6.0% 6.5%
(Finance charge per $100 of amount financed)
7.90 8.71 9.52
10.34
10.54
13.83
11.63 12.73
13.23 14.61 16.00 17.40
7.09
9.46
11.86
Print
Done
Transcribed Image Text:Number of payments 36 48 60 Annual Percentage Rate 4.5% 5.0% 5.5% 6.0% 6.5% (Finance charge per $100 of amount financed) 7.90 8.71 9.52 10.34 10.54 13.83 11.63 12.73 13.23 14.61 16.00 17.40 7.09 9.46 11.86 Print Done
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