Shirley, a recent college graduate, excitedly described to her older sister the

$1,720

sofa, table, and chairs 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 one-year repayment period and

13.75

percent interest. Now, assume the store uses the add-on method of interest calculation. Calculate the monthly payment and total cost with a one-year repayment period and

11.75

percent interest. Using the information above, how much interest will Shirley "save" or be rebated if she can repay the loans after six months?Click on the table icon to view the MILPF table