The monthly payments for each add-on interest loan will be $29.71.
Given Information and Formula Used
Principal Amount, P = $1150
Rate of Interest, R = 6%
Duration of loan in years, T = 4
The formula for simple interest is given as,
I = (P × R × T)/100
Calculating the Add-On Interest For Each Month
Interest, I = (P × R × T)/100
Substituting the values of P, R, and T in the above formula, we get,
I = $ (1150 × 6 × 4)/100
I = $ 27600/100
I = $276
Calculating the Total Monthly Payment With Interest
Amount of add-on interest loan, A = P + I
A = $1150 + $276
A = $1,426
Monthly payment with interest = A/(4×12)
= $ 1426/48
= $29.71
Hence, the monthly payments for each add-on interest loan would be $29.71.
Learn more about interest here:
https://brainly.com/question/13324776
#SPJ1
