Suppose that you borrow $11000 for 4 years at 6% toward the purchase of a car. Find the monthly payments and the total interest for the loan.

The monthly payments ≅ $258.335

The total interest of the loan ≅ $1400.095

Step-by-step explanation:

The rule of the monthly payments is

, where

∵ You borrow $11000

∴ P = 11000

∵ It will be for 4 years

∴ t = 4

∵ The rate is 6%

∴ r = 6% = = 0.06

∵ It is a monthly payment

∴ n = 12

→ Substitute these values in the rule above

∴

→ Use your calculator to find the answer

∴ M.P = 258.3353195

∴ The monthly payments ≅ $258.335

→ The total interest of the loan is the difference between the total

   of the monthly payments and the initial amount

∴ The total interest of the loan = T.M.P - P

∵ The total of the monthly payments = M.P × t × n

∴ The total of the monthly payments = 258.3353195 × 4 × 12

∴ The total of the monthly payments = $12400.09534

∵ The initial amount P = $11000

∴ The total interest of the loan = 12400.09534 - 11000

∴ The total interest of the loan = 1400.095

∴ The total interest of the loan ≅ $1400.095

450 is the final answer! : )

72 is the answer to this problem