A finance company offers a 24-month installment loan with an APR of \( 13.5 \% \). Robert wishes to use the loan to finance a delivery truck for \( \$ 31,200 \). After first using Table 1 to find the finance charge, calculate the monthly payment. Select one: o. \( \$ 612.11 \) a b. \( \$ 1,475.50 \) o c. \( \$ 1,490.58 \) o d. \( \$ 1,651.00 \)

To calculate the monthly payment for Robert's 24-month installment loan, we need to first find the finance charge using the APR and the loan amount. Given: - APR = 13.5% - Loan amount = $31,200 - Loan term = 24 months 1. Calculate the finance charge: \[ \text{Finance Charge} = \text{Loan Amount} \times \text{APR} \times \frac{\text{Loan Term}}{12} \] 2. Calculate the monthly payment: \[ \text{Monthly Payment} = \text{Loan Amount} + \text{Finance Charge} \] Let's calculate the finance charge and then the monthly payment. Calculate the value by following steps: - step0: Calculate: \(\frac{31200\times 13.5\times 24}{12}\) - step1: Multiply the terms: \(\frac{10108800}{12}\) - step2: Reduce the fraction: \(842400\) The finance charge is $84,240. Now, let's calculate the monthly payment: \[ \text{Monthly Payment} = \text{Loan Amount} + \text{Finance Charge} \] \[ \text{Monthly Payment} = \$31,200 + \$84,240 \] \[ \text{Monthly Payment} = \$115,440 / 24 \] \[ \text{Monthly Payment} = \$4811.50 \] Therefore, the monthly payment is $4,811.50. The correct answer is: b. $1,475.50