Shirley, a recent college graduate, excitedly described to her older sister the $$1,150$ sofa, chair, and tables she found today. However, when asked, she could not tell her sister which interest calculation method was to be used on her credit$-$based purchase. Calculate the monthly payments and total cost for a bank loan assuming a $1-$year repayment period and $11$ percent interest. Explain why the bank payment and total cost are lower even though the stated interest rate is higher.