7. Sue wants to buy a car that costs $12,000. She has arranged to borrow the total purchase price of the car from her credit union at a simple interest rate equal to 10.8 percent. The loan requires monthly payments for a period of three years (monthly compounding). If the first payment is due one month from now after purchasing the car, what will be the amount of Sues monthly payments on the loan?

a. $384.96 b. $391.73

c. $420.04 d. $435.79