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 5.5% a) determine landon's finance charge. b) determine landon's monthly payment.

  a)  $627.80

  b)  $82.13

Step-by-step explanation:

It is convenient to compute the monthly payment first, then figure the total amount repaid and the finance charge.

These problems are easily solved using a calculator's TVM Solver, an on-line loan amortization calculator, or a spreadsheet. You can also use the amortization formula:

  A = Pr/(1 -(1 +r)^-n)

where A is the monthly payment, P is the loan amount, r is the monthly interest rate, and n is the number of months

b) Using the above formula, ...

  A = $4300(.055/12)/(1 -(1 +0.055/12)^-60) = $19.708333/0.23995049

  A = $82.13

The monthly payment amount is $82.13.

__

a) 60 monthly payments add up to ...

  $82.13 × 60 = $4927.80

Since $4300 of that amount is principal, the finance charge is ...

  $4927.80 -4300.00 = $627.80

Landon's finance charge is $627.80.

Comment on finance charge

The actual payment amount is almost 1/2 cent higher than the rounded amount shown above. Over 60 months, this would add a little more than $0.30 to the total amount repaid. In real life, the difference would probably show up as an adjustment to the final loan payment of perhaps $0.34. That is, a more careful amortization of the loan may reveal finance charges total $628.14.

a. turk and mcalister

b. howard, mission, and market

c. yes. since streets end some do not cross yet are not parallel to others. example: mcalister and 5th

step-by-step explanation:

parallel lines are lines which do not intersect ever and look a lot like railroad tracks. turk, mcalister and golden gate are examples of these.

intersect are streets which cross each other and a car on one can reach the other. howard, mission, and market intersect with 6th.

skew lines are lines which neither intersect nor are parallel. these lines exist here because some streets end and never intersect another like mcalister and 5th.