1. Using Exhibit 7.5 or a financial calculator, determine the required monthly payments if the loan is taken out at First National Bank of Charlottesville.
2. Compute
(a) The finance charges
(b) The APR on the loan offered by First National Bank of Charlottesville.
3. Determine the size of the monthly payment required on the loan from the Charlotesville Teacher’s Credit Union.
4. Compute
(a) The finance charges
(b) The APR on the loan offered by the Charlottesville Teacher’s Credit Union.
5. Compare the two loans and recommend one of them to Michael. Explain your recommendation.