To determine the monthly payment for the bank loan, we will use the PMT formula:

$\text{PMT} = \frac{P \left( \frac{r}{n} \right)}{1 - \left( 1 + \frac{r}{n} \right)^{-nt}}$

Where:

• $P$ is the loan amount (in this case, $4800).
• $r$ is the annual interest rate (10.5% = 0.105).
• $n$ is the number of payments per year (monthly payments, so $n = 12$).
• $t$ is the loan term in years (4 years).

Let's calculate the monthly payment (PMT):

1. $P = 4800$
2. $r = 0.105$
3. $n = 12$
4. $t = 4$

Substituting into the formula:

$\text{PMT} = \frac{4800 \left( \frac{0.105}{12} \right)}{1 - \left( 1 + \frac{0.105}{12} \right)^{-12 \times 4}}$

Let's calculate the monthly payment step by step.The monthly payment for the bank loan is approximately $123.

Now, let's compare this with the monthly credit card payment of $174.

Since $123 is less than $174, we'll calculate the difference:

$174 - 123 = 51$

So, the bank loan payment is $51 less than the monthly credit card payment.

Therefore, the correct option is:

B. The monthly payments for the bank loan are approximately $123. This is $51 less than the monthly credit card payments.

Would you like further details or have any questions?

Here are 5 related questions to expand on this:

1. How does the total interest paid over the bank loan term compare to the credit card interest?
2. What is the total amount paid over the 4-year loan term?
3. What would happen to the monthly payments if the loan term was reduced to 3 years?
4. How much would the monthly payment change if the interest rate were 12% instead of 10.5%?
5. Can making additional payments to the loan reduce the total interest paid?

Tip: A longer loan term generally results in lower monthly payments but higher total interest paid over time.