In month 10, the payment amount is $183.36. Of this payment amount, $ repays the principal. pays interest, and You can see from this sample repayment schedule that the repayment amount generally remains the same from month to month. However, as the months progress, a percentage of the payment pays interest, and a percentage repays the principal. 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 an interest rate to the amount borrowed times the number of years in the loan term. The following formula is used to calculate the amount of add-on interest: I PRT I (Interest) - P(Principal Amount Borrowed) x R (Interest Rate) x T (Time of Loan in Years) Consider the following example: Assume that Kyoko Kitano from Chicago, Illinois, borrows $1,700 for five years at 6% add-on interest to be repaid in monthly installments. Use the add-on equation 1 = PRT, to calculate Kyoko's finance charge in dollars: $ LARRA Now add the interest in dollars to the original amount borrowed (the principal). The total amount that Kyoko must repay is $ Divide the total amount owed by the number of monthly payments (60 payments) to obtain Kyoko's monthly payment. (Round the payment to the nearest penny) Kyoko must make 60 monthly payments of $ BSDIRE each