To calculate the monthly payment for Karen and Wayne's refrigerator loan, we will follow these steps:

1. Calculate the total cost of the refrigerator including sales tax:

   • Cost of the refrigerator: $1,568
   • Sales tax: 5% of $1,568

   $\text{Sales tax} = 0.05 \times 1568 = 78.40$ $\text{Total cost} = 1568 + 78.40 = 1646.40$

2. Calculate the total interest on the loan:

   • The add-on rate is 12%, which means the interest is calculated on the total loan amount for the full term.
   • Total amount borrowed: $1,646.40
   • Total interest for 3 years:

   $\text{Total interest} = 0.12 \times 1646.40 \times 3 = 0.12 \times 4939.20 = 592.70$

3. Calculate the total amount to be repaid: $\text{Total repayment} = \text{Total cost} + \text{Total interest} = 1646.40 + 592.70 = 2239.10$

4. Calculate the monthly payment:

   • Total payment period: 3 years = 36 months

   $\text{Monthly payment} = \frac{2239.10}{36} \approx 62.75$

Thus, the monthly payment for Karen and Wayne will be approximately $62.75.

If you have any questions or would like more details, feel free to ask! Here are some related questions to consider:

1. What would the total cost be if the refrigerator price increased by 10%?
2. How would the monthly payment change if they extended the loan term to 4 years?
3. What are the implications of using a credit card instead of a loan for this purchase?
4. How much total interest would they pay if the loan had an interest rate of 10% instead of 12%?
5. What are some alternatives to financing a refrigerator purchase?

Tip: Always consider the total cost of financing (including interest) when making large purchases on credit.