A payday loan company offers a $2,500 installment loan at 185% compounded monthly paid back over 60 monthly payments. (Simplify your answers and round to the nearest cent.) a. Find the monthly payment for this loan. Monthly Payment: b. Compute the total of all payments. (Use your rounded answer from Part a.) Total Payments: 2. c. How much of the total payments (answer to Part b.) is interest? Interest: 2. Case Study: Payday Loans. Payday loans are short-term, typically very-high-interest loans available to consumers which might be considered as predatory lending. In addition to having interest rates that average around 400% (much more than in this problem!), often there are many difficult-to-understand fees associated with them. Generally, it is best to look for safer, alternative personal loan options unless in absolute need. Read the Investopedia page for more information on the payday loans