Shirley, a recent college graduate, excitedly described to her older sister the $1,010 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 13.50

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 11.50 percent interest. Explain why the bank payment and total cost are lower even though the stated interest rate is higher.

The monthly payment for a bank loan assuming one-year repayment period and 13.50% interest is $90.4590.45. (Round to the nearest cent.)

The total cost for a bank loan assuming one-year repayment period and 13.50%

interest is (Round to the nearest cent.)

FYI the question has 5 part n i did the first which was 90.45. PMT=PVPV MILPFi,n

You can find the payment using a financial table or a financial calculator.