To calculate the total interest using the add-on method, we use the following formula:

$\text{Total Interest} = P \times r \times t$

Where:

• $P$ is the principal (loan amount).
• $r$ is the annual interest rate (as a decimal).
• $t$ is the time of the loan in years.

Given:

• $P = 4100$
• $r = 4.6\% = 0.046$
• $t = 4 \text{ years}$

Now, let's calculate the total interest.The total interest for the loan is $754.40.

Next, we will calculate the monthly payment using the add-on method. The formula for the monthly payment is:

$\text{Monthly Payment} = \frac{P + \text{Total Interest}}{t \times 12}$

Let's calculate it now.The monthly payment for the loan is $101.13.

Would you like more details on this calculation, or do you have any questions?

Here are 5 related questions to expand your understanding:

1. What is the difference between the add-on method and simple interest method?
2. How would the total interest change if the loan term was extended to 5 years?
3. What happens to the monthly payment if the interest rate increases to 5%?
4. How does compound interest compare to the add-on method for loan repayments?
5. What are the advantages of paying off a loan early?

Tip: Always check if your loan allows for early repayment without penalties, as this can save you money on interest.