Fritz Benjamin buys a car costing $\$ 14,000$. He agrees to make payments at the end of each monthly period for 4 years. He pays $8.4 \%$ interest, compounded monthly.
(b) Find the total amount of interest Fritz will pay.
(a) Fritz's monthly payment is $\$ 344.42$.
(Round to the nearest cent as needed.)
(b) Fritz will pay a total of $\$$ in interest. (Round to the nearest cent as needed.)
Answer
Final Answer: Fritz will pay a total of \(\boxed{2532.16}\) in interest.
Step 1 ：Fritz's monthly payment is \( \$344.42 \).
Step 2 ：He makes payments for 4 years, which is \( 48 \) months.
Step 3 ：So, the total amount he will pay over the 4 years is \( \$344.42 \times 48 = \$16532.16 \).
Step 4 ：The original cost of the car is \( \$14000 \).
Step 5 ：To find the total amount of interest Fritz will pay, we subtract the original cost of the car from the total payment. So, the total interest is \( \$16532.16 - \$14000 = \$2532.16 \).
Step 6 ：Final Answer: Fritz will pay a total of \(\boxed{2532.16}\) in interest.
