Shirley, a recent college graduate, excitedly described to her older sister the $1,110 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 14.75 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 12.75 percent interest. Explain why the bank payment and total cost are lower even though the stated interest rate is higher. Complete all 4 problams:

Question 1 -The monthly payment for a bank loan assuming one-year repayment period and 14.75 percent interest is ? $ (Round to the nearest cent.)

Monthly Installment Loan Tables ($1,000 loan ith interest payments compounded monthly)
i	6	12	18	24	30	36	48	60	72	84	96
14.75%	173.91	90.14	62.27	48.37	40.06	34.54	27.7	23.66	21.01	19.16	17.8
12.75%	172.92	89.2	61.33	47.42	39.1	33.57	26.7	22.63	19.94	18.06	16.67