Answer
The monthly payments are $\$244$
The interest is $\$1712$
Work Step by Step
We can use this formula to calculate the payments for a loan:
$PMT = \frac{P~(\frac{r}{n})}{[1-(1+\frac{r}{n})^{-nt}~]}$
$PMT$ is the amount of the regular payment
$P$ is the amount of the loan
$r$ is the interest rate
$n$ is the number of payments per year
$t$ is the number of years
$PMT = \frac{P~(\frac{r}{n})}{[1-(1+\frac{r}{n})^{-nt}~]}$
$PMT = \frac{(\$10,000)~(\frac{0.08}{12})}{[1-(1+\frac{0.08}{12})^{-(12)(4)}~]}$
$PMT = \$244$
The monthly payments are $\$244$
We can find the total amount paid.
$\$244 \times 48 = \$11,712$
The interest is the difference between the total amount paid and the amount of the loan.
$I = \$11,712 - \$10,000 = \$1712$
The interest is $\$1712$
