Landon Wallin is an auto mechanic who wishes to start his own business. He will need $$ \$ 4200 $$ 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. Click the icon to view the partial APR table. a) Landon's finance charge is $$ \$ $$ . ___(Round to the nearest cent as needed.)

Question

Landon Wallin is an auto mechanic who wishes to start his own business. He will need $$ \$ 4200 $$ 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. Click the icon to view the partial APR table.  a) Landon's finance charge is $$ \$ $$ . ___(Round to the nearest cent as needed.)

Donnelly Simmons · Accepted Answer

a)$$P M T = \frac { \log x \frac { r } { 12 } } { 1 - ( 1 + \frac { r } { 12 } ) ^ { n } } $$$$= \frac { 4200 	imes \frac { 0.045 } { 12 } } { 1 - ( 1 + \frac { 0.045 } { 12 } ) } $$$$P M T = 78 \cdot 3$$Finance charge $$ = 78.3 	imes 60 - 4200 = \$ 498$$ b)$$P M T = \$ 78.3$$

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