Answer:
$48.54
Explanation:
We must express the interest rate on a monthly basis.
i = 8 %/yr = 0.6667 %/mo = 0.006 667
A = $4000
n = 120 mo
[tex]P = A(\frac{i}{1-(1+i)^{-n}})[/tex]
[tex]P = 4000(\frac{0.006667 }{1-(1+0.006667)^{-120}})[/tex]
[tex]P = \frac{26.67}{1-0.006667^{-120}}[/tex]
[tex]P = \frac{26.67}{1-0.4505}[/tex]
[tex]P = \frac{26.67}{0.5495}[/tex]
P = 48.531
The banks round up the numbers, so Seki’s monthly payment is $48.54.
