9. Calculating an installment loan payment using the add-on method Calculating the Loan Payment on an Add-On Interest Installment Loan Installment loans allow borrowers to repay the loan with periodic payments over time. They are more common than single-payment loans because it is easier for most people to pay a fixed amount periodically (usually monthly) than budget for paying one big amount in the future. Interest on instaliment loans may be computed using the simple interest method or the add-on method. The add-on method is a widely used technique for computing interest on installment loans. With the add-on method, interest is calculated by applying the stated interest rate to the balance of the loan. Finance charges using the add-on method are computed using the simple interest formula: Fs= Amount of Loan x Interest Rate x Term of Loan where Fs is the finance charge for the loan, and the term of the loan is in You're borrowing $10,000 for a year with a stated annual interest rate of 12%. Complete the following table. (Note: Round your answers to the nearest dollar.) You will make monthly payments throughout the life of the loan, in this case, months. What will your monthly payments be? Round your answer to the nearest cent. $