A customer wants to borrow $1,200 from Edmond State Bank.Edmond State Bank has an add-on loan with an interest rate of 12 percent and monthly payments for one year.What are the monthly payments this customer will need to make on this loan?

Question

Quizplus · Accepted Answer

The add-on interest for a $1,200 loan at 12% for one year is $144. The total amount to be repaid is $1,344 ($1,200 + $144). Dividing this by 12 months gives a monthly payment of $112.

A Customer Wants to Borrow $1,200 from Edmond State Bank