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The problem you've uploaded involves a 2-year add-on interest loan for $5,360 with an annual interest rate of 9.63%. We need to calculate the total interest she will pay and her monthly payments.

### 1. Total Interest Paid:
The formula for total interest in an add-on loan is:
\[
\text{Total Interest} = P \times r \times t
\]
Where:
- $ P = 5,360 $ (Principal amount),
- $ r = 9.63\% = 0.0963 $ (Annual interest rate),
- $ t = 2 $ years (Loan term).

\[
\text{Total Interest} = 5,360 \times 0.0963 \times 2 = 1,032.048
\]

Rounding to the nearest cent:
\[
\text{Total Interest} = 1,032.05
\]

### 2. Total Amount to Repay:
The total amount to be repaid is the sum of the principal and the total interest:
\[
\text{Total Repayment} = 5,360 + 1,032.05 = 6,392.05
\]

### 3. Monthly Payments:
Since the loan is for 2 years, the number of monthly payments is:
\[
\text{Number of Payments} = 2 \times 12 = 24
\]
The monthly payment is:
\[
\text{Monthly Payment} = \frac{\text{Total Repayment}}{\text{Number of Payments}} = \frac{6,392.05}{24} = 266.3354
\]

Rounding to the nearest cent:
\[
\text{Monthly Payment} = 266.34
\]

### Final Answers:
- She will pay **$1,032.05** in interest.
- Her monthly payments will be **$266.34**.

Would you like further details or explanations?

#### Related Questions:
1. How would the interest change if the interest rate were 12% instead of 9.63%?
2. What if the loan term was 3 years? How would the monthly payments change?
3. How would the interest change if the loan amount was $7,000 instead of $5,360?
4. What is the effective annual rate (EAR) for this loan?
5. How would the monthly payment change if the loan was repaid quarterly instead of monthly?

**Tip**: When calculating interest over multiple years, always ensure you're using the correct time period for accurate results.

Angela's bank gave her a 2-year add-on interest loan for $5,360 to pay for new equipment for her antiques restoration business. The annual interest rate is 9.63%. How much interest will she pay? What are her monthly payments?

Learn how to calculate the total interest and monthly payments for a 2-year add-on interest loan of $5,360 at an annual interest rate of 9.63%. This problem involves simple interest and loan calculations, suitable for Grades 9-12.

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