https://file.aiquickdraw.com/mathbot/file/17282340682888sj6yiyi.jpg

To compute the monthly payments for the given loan with add-on interest, follow these steps:

### Given Information:
- Loan Amount = $2,960
- Annual Interest Rate = 8% (or 0.08 as a decimal)
- Loan Term = 2 years

### Steps to Calculate Monthly Payments:

1. **Calculate the total interest**:
   The formula for add-on interest is:
   \[
   \text{Interest} = \text{Principal} \times \text{Interest Rate} \times \text{Time (in years)}
   \]
   So,
   \[
   \text{Interest} = 2960 \times 0.08 \times 2 = 473.6
   \]

2. **Calculate the total amount to be paid**:
   \[
   \text{Total Amount} = \text{Principal} + \text{Interest} = 2960 + 473.6 = 3433.6
   \]

3. **Calculate the monthly payment**:
   The total amount is paid over 24 months (2 years × 12 months/year).
   \[
   \text{Monthly Payment} = \frac{\text{Total Amount}}{24} = \frac{3433.6}{24} = 143.07
   \]

So, the **monthly payment** is **$143.07**.

Would you like further details or have any questions?

---

Here are five related questions to consider:

1. What would happen if the loan term were extended to 3 years?
2. How does add-on interest differ from simple or compound interest?
3. How can you reduce your monthly payments in a loan?
4. What is the total interest paid over the life of the loan?
5. How does changing the interest rate affect the monthly payment?

**Tip**: Always compare loan offers based on both interest rate and loan terms to determine which is most cost-effective.

Compute the monthly payments for an add-on interest loan of $2960, with an annual interest rate of 8% and a term of 2 years.

Learn how to calculate monthly payments for a loan of $2960 with an add-on interest of 8% over 2 years. This detailed explanation covers the simple interest formula, total payment calculation, and breaking down the monthly payments. Perfect for high school students and loan calculators.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation