You are offered an add-on loan for $4,500 at 18% for 5 years.

o monthly payment 142.50

o amount of interest 67.50

o true interest rate cost of this loan 1.36

If you could pay the same loan above at a compound rate, then:

o the monthly payment be 114.27

o the amount of interest be = (0.18/12)* Previous Balance, the interest is not fixed

Question: monthly payment schedule for each loan above using Excel