Answer:
$41.85
Step-by-step explanation:
You want the monthly payments on an add-on interest loan of $1620 for 5 years at a rate of 11%.
Add-on interest
The total amount due will be ...
A = P(1 +rt)
where P is the principal amount of the loan at interest rate r for t years.
A = 1620(1 +0.11·5) = 1620(1.55) = 2511
The number of monthly payments in 5 years is 5·12 = 60. Each payment will be ...
2511 ÷ 60 = 41.85
The monthly payment is $41.85.
