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The problem involves a simple interest amortized loan of $4000 with a rate of 9.5% (9 1/2%) over 4 years. The task is to find:

1. **Monthly Payment**  
2. **Total Interest**

To solve this, we can use the following formulas:

### 1. Monthly Payment
For an amortized loan, the monthly payment $ P $ can be calculated using the formula:

\[
P = \frac{A \cdot r \cdot (1 + r)^n}{(1 + r)^n - 1}
\]

Where:
- $ A $ is the loan amount ($4000).
- $ r $ is the monthly interest rate (annual rate divided by 12).
- $ n $ is the total number of payments (loan term in months).

The **annual interest rate** is 9.5%, so the **monthly rate** $ r $ is:

\[
r = \frac{9.5\%}{12} = \frac{0.095}{12}
\]

The loan term is 4 years, which gives $ n = 4 \times 12 = 48 $ months.

### 2. Total Interest
The total interest $ I $ is found by subtracting the original loan amount from the total payments made over the loan period:

\[
I = (P \times n) - A
\]

I will now calculate both the monthly payment and total interest.The calculations for the loan are as follows:

1. **Monthly Payment**: \$100.49
2. **Total Interest**: \$823.64

These are rounded to the nearest cent as requested.

Would you like further explanation or have any other questions?

Here are 5 related questions:
1. How does the interest rate affect monthly payments?
2. What would happen if the loan term was extended to 6 years?
3. How is simple interest different from compound interest in loans?
4. What is the difference between amortized loans and interest-only loans?
5. How would prepayment of the loan affect the total interest?

**Tip**: Always try to pay off loans with higher interest rates first to minimize total interest over time.

The following loan is a simple interest amortized loan with monthly payments. $4000, 9 1/2%, 4 years. Find the monthly payment and the total interest.

Learn how to calculate the monthly payment and total interest for a $4000 simple interest amortized loan at a rate of 9.5% over 4 years. This problem covers key financial concepts and provides detailed steps for solving.

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