Find the amount of interest and the monthly payment for the loan. Purchase a living room set for $3,800 at 12% add-on interest for 2 years. (Round your monthly payment to the nearest cent.)

Answer 1

Pt = Po + Po*r*t.
Pt = $3800 + 3800*0.12*2,
Pt = 3800 + 912 = $4712. = Amt. Pd.

I = Po*r*t = 3800*0.12*2 = $912.

Monthly = 4712 / 24mo. = $196.33.