You borrow $10,000 for four years at 8% toward the purchase of a car. a. Find the monthly payments and the total interest for the loanb. Prepare a loan amortization schedule for the first three months of the car loan. Round answers to the nearest cent.

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  

because linear equations are a lot simpler than quadratics equations, and linear equations formula is a lot easier to memorize. that's why i think they're harder.

-2x + 7 = 7

subtract 7 from both sides.

-2x = 0

divide both sides by -2.

x = 0