Big T Burgers and Fries Corp. needs to take out a one-year bank loan of $500,000 and has been offered several different terms. One bank has offered a loan with 11% simple interest that requires monthly payments. The loan principal will be paid back at the end of the year.

Based on a 360-day year, what will be the monthly payment for June? (Hint: Remember that June has 30 days.)

$4,583.33

$5,041.66

$4,812.50

$4,354.16

Another bank has offered 8% add-on interest to be repaid in 12 equal monthly installments. What is the monthly payment on this add-on interest loan?

$42,750.00

$45,000.00

$47,250.00

$49,500.00