The total amount to be paid is defined by the following formula:
[tex]F=P(1+i\cdot t)[/tex]Where F is the total amount to be paid, P is the price ($20650 for this case), i is the interest rate (4.5% for this case, per year), and t is the amount of time (4 years).
Replacing values in the formula:
[tex]F=20650\cdot(1+0.045\cdot4)^{}=24367[/tex]The total amount to be paid is $24367, That amount should be paid in 4 years. 12 months per year for 4 years gives a total amount of (4x12 = 48) 48 months in total. Then, the monthly payment amount is:
[tex]MonthlyPayment=\frac{24367}{48}\approx507.65[/tex]Then, the monthly payment for 4 years should be approximately $507.65
