Compute the monthly payments for an add-on interest loan of $1,200, with an annual interest rate of 9 percent and a term of 2 years. Round to the nearest cent as needed.

Question

campbell_st · Answer

find the interest using the simple interest formula  I = Prn

P = 1200  r = 9/100 and n = 2

I = 216

the interest on the loan is $216

the total to be repaid is 1200 + 216

Total = 1416

the monthly repayment is    1416/24      since it is 2 years or 24 months

1416/24 = 59

The monthly repayment on the loan is $59.00

anonymous · Answer

Thank you!!!!

dumbcow · Answer

nevermind just looked up what an add-on loan is ...it uses simple interest

campbell_st · Answer

lol... like me... I'm use to simple interest