To solve this problem, we need to find Marci's monthly payment and the total finance charge over the course of her loan using the amortization table provided for a loan of \[tex]$5,000 over 2 years at an 8.5% interest rate.
### Step-by-Step Solution:
1. Identify the monthly payment per \$[/tex]1,000 of principal:
- From the provided amortization table, for a 2-year term at an 8.5% interest rate, the monthly payment per \[tex]$1,000 of principal is \$[/tex]45.46.
2. Calculate the total monthly payment for the loan amount:
- The loan amount is \[tex]$5,000.
- The monthly payment per \$[/tex]1,000 is \[tex]$45.46.
- To find the monthly payment for the entire loan amount:
\[
\text{Monthly Payment} = \left( \frac{5000}{1000} \right) \times 45.46 = 5 \times 45.46 = 227.30
\]
- Therefore, Marci's monthly payment will be \$[/tex]227.30.
3. Calculate the total payment over the term of the loan:
- Marci will make payments for 24 months (2 years).
- The total number of payments is [tex]\(24\)[/tex] months.
[tex]\[
\text{Total Payment} = \text{Monthly Payment} \times \text{Number of Payments} = 227.30 \times 24 = 5455.20
\][/tex]
4. Calculate the total finance charge:
- The total finance charge is the total amount paid minus the loan amount.
[tex]\[
\text{Total Finance Charge} = \text{Total Payment} - \text{Loan Amount} = 5455.20 - 5000 = 455.20
\][/tex]
### Final Answer:
- Marci's monthly payment will be [tex]$227.30, and her total finance charge over the course of the loan will be $[/tex]455.20.
