Kramer manufacturing would like to purchase a warehouse for $450,000. how much will the monthly payment be if kramer can finance the warehouse for 10 years at a 4% annual interest rate?

The present value is $450,000, and we have 4% annual interest over 10 years. Since we are looking at monthly payments, we further divide the 10 years into 120 months. The monthly interest is calculated as:
(1.04) = (1+i)^12
i = 0.003274
Then using the formula for periodic payments:
PP = PV*i*(1+i)^n / [(1+i)^n - 1]
PP = (450,000)*0.03274*(1.03274)^120 / (1.03274^120 - 1)
PP = $4540.75
Therefore, the monthly payment is $4,540.75.