Answer:
The monthly payment is $ 244.07
Explanation:
The monthly payment van be computed using the pmt formula in excel,which is =pmt(rate,nper,-pv,fv)
rate is the monthly rate on balance after the down payment which is 2%/12=0.001666667
nper is the number of monthly payments required in 4 years i.e 12*4=48
pv is the amount to be paid after deducting the down payment of 10%
$12,500-($12,500*10%)=$11,250
The future value of the repayments is not known,it zero.
=pmt(0.001666667
,48,-11250,0)
pmt=$244.07