Norbit is looking to buy a car for $32,550 and finance it over 4 years. Using an annual interest rate of 8%, we can calculate his monthly payment.
First, we will calculate the total amount of interest over the 4-year period. To do this, we multiply the interest rate (8%) by the amount borrowed ($32,550) and then by the number of years (4).
0.08 × $32,550 × 4 = $10,620
Next, we need to find the total amount that Norbit will pay over the 4-year period. To do this, we add the amount borrowed ($32,550) to the total interest ($10,620).
$32,550 + $10,620 = $43,170.
Finally, to calculate the monthly payment, we divide the total amount by the number of months in 4 years (48). q
$43,170 ÷ 48 = $899.37
Therefore, if Norbit finances his car for 4 years at an annual interest rate of 8%, his monthly payment will be $899.37
Hope this helps! Have a nice day. :)