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 installment 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: original F.Amount of Loan Interest Ratex decreasing where F, is the finance charge for the loan, and the term of the loan is in You're borrowing $6,000 for a year and a half with a stated annual int F. Amount of Loan x Interest Rate x Term of Loan where F, is the fleance charge for the loan, and the term of the loan is in You're borrowing 35,000 for a year and a half with a stated annual interes years months Complete the following tabia. (Note: Round your answers to the nearest dollar Principal $6.000 Finance charge 14 Total payback 31 You will make monthly paymients throughout the life of the loan, in this case What will your monthly payments bet Round your answer to the nearest cont. S