Answer:
A. $3,520
B. $13,520
C. $240 monthly
D. 21.55%
Explanation:
A. Calculation for the total interest 
Using this formula 
Interest = (Principal) (Rate) (Time) 
Let plug in the formula 
 Interest = (8000)(.11)(4) 
Interest = $3,520
B. Calculation for the total cost of the car 
Using this formula 
 Total Cost = Down Payment + Principal amount Borrowed + Interest amount 
Let plug in the formula 
 Total Cost = $2,000 + $8,000 + $3,520
Total Cost = $13,520
C. Calculation for the monthly payment 
Using this formula 
 Monthly Payment = (Principal amount Borrowed + Total interest amount ) / Total number of payments
Monthly Payment = ($8,000 + $3,520) / 48
Monthly Payment=$11,520/48
Monthly Payment=$240 monthly 
Note 4-year * 12 months will give us 48months
D. Calculation for the annual percentage rate (APR) using this formula 
APR= (2 × n × I) / [P × (N + 1)]
Let plug in the formula 
 APR = (2 × 12 × $3,520) / [$8,000 × (48+1)] 
APR =$84,480/$8,000×49
APR=$84,480/$392,000
APR=0.2155×100
APR= 21.55%