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

a. What is the monthly payment?

b. What is the amount of interest?

c. What is the true interest rate cost of this loan?

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

a. What would the monthly payment be?

b. What would the amount of interest be?

c. Prepare a monthly payment schedule for each loan above using Excel, and submit it.