Shirley, a recent college graduate, excitedly described to her older sister the $$1,300$ 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 cos for a bank loan assuming a one$-$year repayment period and $13\mathrm{.}50$ 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 $11\mathrm{.}50$ percent interest. Explain why the bank payment and tot cost are lower even though the stated interest rate is higher.

Note: Round intermediate computations to at least five $(5)$ decimal places.

Click on the table icon to view the Monthly Installment Loan Payment Factor $($MILPF$)$ table:

The monthly payment for a bank loan assuming one$-$year repayment period and $13\mathrm{.}50\%$ interest is $

$($Round to the nearest cent.$)$

$($Click on the following icon $$ in order to copy its contents into a spreadsheet.$)$

$\backslash$table$[[$Loan Maturity $($in months$)],[$Interest