Your brother,a banker,has just approved a loan for you,an add-on interest loan.You will borrow $2,000 for one year with a 12% annual interest rate.What is your monthly payment?

Question

Quizplus · Accepted Answer

To calculate the monthly payment for the add-on interest loan, we need to add the annual interest to the loan amount and divide by the number of months in the loan term. 
Total amount owed = $2,000 + ($2,000 * 12%) = $2,240
Number of months in 1 year = 12
Monthly payment = $2,240 / 12 = $186.67 
Therefore, the monthly payment is $186.67, which is closest to option B.

Your Brother,a Banker,has Just Approved a Loan for You,an Add-On