Use the​ add-on method of calculating interest to find the total interest and the monthly payment.

Amount of Loan

Length of Loan

Interest Rate

​$41004100

44 

years

4.64.6​%

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Part 1

The total interest is 

​(Round to the nearest cent as​ needed.)

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.

Use the add-on method of calculating interest to find the total interest and the monthly payment. Amount of Loan: $4100, Length of Loan: 4 years, Interest Rate: 4.6%.

Learn how to calculate total interest and monthly payment for a $4100 loan over 4 years with an interest rate of 4.6% using the add-on method. This guide covers the formula for total interest and monthly payment step-by-step. Suitable for high school students (Grades 10-12).

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