To find Marci's monthly payment and total finance charge, you can follow these steps:
1. Determine the monthly payment per [tex]$1,000 of principal:
- From the amortization table, for an interest rate of 8.5% over a term of 2 years, the monthly payment per $[/tex]1,000 is [tex]$45.46.
2. Calculate the total loan amount in units of $[/tex]1,000:
- Marci's loan amount is [tex]$5,000. Therefore, the loan amount in units of $[/tex]1,000 is [tex]\( \frac{5000}{1000} = 5 \)[/tex].
3. Calculate the monthly payment:
- Multiply the monthly payment per [tex]$1,000 by the number of $[/tex]1,000 units:
[tex]\[
\text{Monthly Payment} = 45.46 \times 5 = 227.30
\][/tex]
4. Calculate the total payment over the loan term:
- The term of the loan is 24 months.
- Total payment is calculated by multiplying the monthly payment by the number of months:
[tex]\[
\text{Total Payment} = 227.30 \times 24 = 5455.20
\][/tex]
5. Calculate the total finance charge:
- Subtract the original loan amount from the total payment:
[tex]\[
\text{Finance Charge} = 5455.20 - 5000 = 455.20
\][/tex]
Therefore, 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.
