Zachary Porter of Abilene, Texas, is contemplating borrowing $10,000 from his bank. The bank could use add-on

Question:

Zachary Porter of Abilene, Texas, is contemplating borrowing $10,000 from his bank. The bank could use add-on rates of 6.5 percent for 3 years, 7 percent for 4 years, and 8 percent for 5 years. Use Equation 7.1 to calculate the finance charge and monthly payment for these three options.