BarLey Inc. recently borrowed $125,000 from its bank at a simple interest rate of 12 percent. The loan is for one year, and the loan agreement requires the interest to be added to the amount borrowed and the total amount to be repaid in monthly installments. Compute the amount of the monthly payments on the loan.

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The correct answer is A.The amount of the monthly payments on the loan can be computed using the following formula:Monthly payment = (Principal + Interest) / Number of monthsIn this case, the principal is $125,000, the interest rate is 12%, and the loan is for one year, which is 12 months.Therefore, the monthly payment is:Monthly payment = (125,000 + (125,000 * 0.12)) / 12= (125,000 + 15,000) / 12= 140,000 / 12= $11,666.67Therefore, the amount of the monthly payments on the loan is $11,667.