1. **State the problem:** Calculate the monthly payment, total paid over the term, and interest paid over the term for a loan amount of 24298.20 dollars, an annual interest rate of 4%, and a term of 3 years. 2. **Formula for monthly payment:** The formula for the monthly payment $M$ on a loan is given by: $$M = P \times \frac{r(1+r)^n}{(1+r)^n - 1}$$ where: - $P$ is the loan amount (principal), - $r$ is the monthly interest rate (annual rate divided by 12), - $n$ is the total number of payments (months). 3. **Calculate monthly interest rate and number of payments:** - Annual interest rate = 4% = 0.04 - Monthly interest rate $r = \frac{0.04}{12} = 0.0033333$ - Number of payments $n = 3 \times 12 = 36$ 4. **Calculate monthly payment:** $$M = 24298.20 \times \frac{0.0033333(1+0.0033333)^{36}}{(1+0.0033333)^{36} - 1}$$ Calculate $(1+0.0033333)^{36}$: $$1.0033333^{36} \approx 1.12749$$ Substitute back: $$M = 24298.20 \times \frac{0.0033333 \times 1.12749}{1.12749 - 1} = 24298.20 \times \frac{0.0037583}{0.12749}$$ Simplify fraction: $$\frac{0.0037583}{0.12749} \approx 0.02949$$ So: $$M = 24298.20 \times 0.02949 = 716.56$$ 5. **Calculate total paid over the term:** $$\text{Total paid} = M \times n = 716.56 \times 36 = 25796.16$$ 6. **Calculate interest paid over the term:** $$\text{Interest paid} = \text{Total paid} - P = 25796.16 - 24298.20 = 1497.96$$ **Final answers:** - Monthly payment = $716.56$ - Total paid over term = $25796.16$ - Interest paid over term = $1497.96$