Todd Kowalski is borrowing $11,000 for 5 years at 9 percent. Payments are made on a monthly basis, which are determined using the add-on method.
How much total interest will Todd pay on the loan if it is held for the full five-year term? $
What are Todd's monthly payments? Round the answer to the nearest cent. $ per month
How much higher are the monthly payments under the add-on method than under the simple interest method (determined using a calculator or approximated using Exhibit 7.5)? Round the answer to the nearest cent. $ per month