Question

Need help answering the last problem all answers shown are correct. The table is not needed. Thanks

Shirley, a recent college graduate, excitedly described to her older sister the $1,500 sofa, table, and chairs she found today. However, when asked she could not tell her sister which interest calculation method was to be used on her credit-based purchase. Calculate the monthly payments and total cost for a bank loan assuming a one-year repayment period and 14 percent interest. Now, assume the store uses the add-on method of interest calculation. Calculate the monthly payment and total cost with a one-year repayment period and 12 percent interest. Using the information above, how much interest will Shirley "save" or be rebated if she can reapy the loans after six months? Click on the table icon to view the MILPF table B. For a bank loan assuming a one-year repayment period and 14% interest, the monthly payment is $ 134.68 . (Round to the nearest cent.) For a bank loan assuming a one-year repayment period and 14% interest, the total cost is $ 1616.16. (Round to the nearest cent.) For the add-on loan method with one-year repayment period and 12% interest, the monthly payment is $ 140.00. (Round to the nearest cent.) For the add-on loan method with one-year repayment period and 12% interest, the total cost is $ 1680.00. (Round to the nearest cent.) If Shirley pays the bank loan back after six months, she will "save" $ . (Round to the nearest cent.)

Answer 1

Ans If Shirely uses the simple interest method she would save
$5.31 per month so for 12 months she will save
12*5.31	63.72	answer
Add on method would be more expensive as it assumes that the
total loan is for whole year instead of decreasing balance