Answer:
monthly payment $244.13
total interest $1,718.24
Find attached amortization schedule
Step-by-step explanation:
The monthly payment on the loan can be determined using the loan amount formula below whereby the formula is rearranged in order to make the monthly payment the subject of the formula:
PV=monthly payment*(1-(1+r)^-n/r
PV=loan amount=$10,000
the monthly payment is the unknown
r=monthly interest rate=8%/12=0.006666667
n=number of monthly payments in 4 years=4*12=48
10,000=monthly payment*(1-(1+0.006666667 )^-48/0.006666667
10,000=monthly payment*(1-(1.006666667 )^-48/0.006666667
10,000=monthly payment*(1-0.726920580280832)/ 0.006666667
10,000=monthly payment*0.273079419719168 /0.006666667
monthly payment=10,000*0.006666667/0.273079419719168=$244.13
total interest=total payments-loan amount
total interest=($244.13*48)-$10,000=$1,718.24
