Part 1

Jamie needs a new roof on her house. The cash cost is $4200. She decides to finance the project by paying 14.0% down, with the balance paid in 6 monthly payments of $615.

a) What finance charge will Jamie pay?

b) What is the APR to the nearest half percent?

Part 2

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.