https://file.aiquickdraw.com/mathbot/file/1729474047692a33ppeb1.jpg

Let's work through this calculation based on the image.

### Given:
- **Purchase (Cash) Price** = $50,700
- **Down Payment** = 25%
- **Add-on Interest** = 10.8%
- **Number of Payments** = 60 months

### Step-by-Step Calculation:

1. **Down Payment**:
   \[
   \text{Down Payment} = \text{Purchase Price} \times \text{Down Payment Percentage}
   \]
   \[
   \text{Down Payment} = 50,700 \times 0.25 = 12,675
   \]

2. **Amount Financed**:
   \[
   \text{Amount Financed} = \text{Purchase Price} - \text{Down Payment}
   \]
   \[
   \text{Amount Financed} = 50,700 - 12,675 = 38,025
   \]

3. **Finance Charge (Add-on Interest)**:
   Add-on interest is calculated based on the entire amount financed, without accounting for interest already paid:
   \[
   \text{Finance Charge} = \text{Amount Financed} \times \text{Add-on Interest Rate} \times \text{Number of Years}
   \]
   \[
   \text{Number of Years} = \frac{60}{12} = 5
   \]
   \[
   \text{Finance Charge} = 38,025 \times 0.108 \times 5 = 20,534.70
   \]

4. **Total Amount Repaid**:
   \[
   \text{Total Amount Repaid} = \text{Amount Financed} + \text{Finance Charge}
   \]
   \[
   \text{Total Amount Repaid} = 38,025 + 20,534.70 = 58,559.70
   \]

5. **Monthly Payment**:
   \[
   \text{Monthly Payment} = \frac{\text{Total Amount Repaid}}{\text{Number of Payments}}
   \]
   \[
   \text{Monthly Payment} = \frac{58,559.70}{60} = 975.99
   \]

### Final Answers:
- **Amount Financed** = $38,025
- **Finance Charge** = $20,534.70
- **Monthly Payment** = $975.99

Would you like a further breakdown of any of these steps? 

Here are 5 related questions:
1. How would the monthly payment change if the interest rate was lower?
2. What happens to the finance charge if the loan term is shorter?
3. How do add-on interest loans differ from simple interest loans?
4. What would be the total cost of the loan if a higher down payment were made?
5. How can add-on interest impact the total amount paid over time compared to other loan types?

**Tip:** Add-on interest loans calculate interest on the full loan amount over the entire loan term, often making them more expensive than simple interest loans.

Calculate the amount financed, the finance charge, and the monthly payments (in $) for the add-on interest loan. Given a purchase price of $50,700, a down payment of 25%, an add-on interest rate of 10.8%, and a loan term of 60 months.

Learn how to calculate the amount financed, finance charge, and monthly payments for an add-on interest loan with a purchase price of $50,700, a down payment of 25%, and an interest rate of 10.8% over 60 months. This detailed guide provides step-by-step formulas and calculations, suitable for students in Grades 10-12.

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