Compute the total interest and the monthly payments for an a

Compute the total interest and the monthly payments for an add-on interest loan of $2180, with an annual interest rate of 7 percent and a term of 4 years. The total interest is $ (Round to the nearest cent.)

Solution

A = 2180

i = 7%

n = 4yrs

F = A * (1+iy/12)^(12n) -1) / i

F = 2180 * ((1.0058)^48 -1)/(0./00583)

F = 120356.8 $

Total Interest = F - 48A

I = 120356.8 - 48 * 2180

I = 15716.82 $