Question

Suppose that you borrow $30,000 for four vears at 8% for

the purchase of a car. Find the monthly payments and the
total interest for the loan.

Answer 1

Use the compound interest formula to solve this problem.

$41,269.98. is the total

The total interest is 11269.98

Monthly payment is 859.79125

41,269.98 divided by 4 is 10317.495
10317.495 divided by 12 is 859.79125
859.79125 times 4 is 41269.98

Answer 2

$41269.983

rounded:

$41,269.98

Explanation:

well you begin with the equation a=p(1+r/n)
`^(nt)`

so 30,000(1+0.08/12)to the power of 4 times 12

when you plug all of that in a calculator your receive $41269.983