Answer:
a) $316.05Step-by-step explanation:
A) Total Loan = $ 4,500
Period = 36 Months
Rate = 4.5%
Finance charges rate for 36 months at the rate of 4.5% = 7.09 per $100
total finance charge = (7.09/100)4500 = $319.05
B)
monthly payment = P x R x (1+R)^N / [(1+R)^N-1] = 4500 x (4.5/12/100) x (1+4.5/12/100)^36 / [(1+4.5/12/100)^36-1]
= 4000x(0.375/100)x(1.375/100)^36 / ((1.375/100)^36 - 1) = $134.0