To determine the monthly payment for add -on -interest:
[tex]\begin{gathered} \text{ principal= \$840} \\ \text{ annual interest rate = 9\%} \\ \text{time = 3 years} \end{gathered}[/tex][tex]\begin{gathered} \text{Interest = }\frac{P\text{ X R X T}}{100} \\ \text{Interest = }\frac{\text{ \$ 840 x 9 x 3}}{100} \\ \text{Interest = \$226.8} \end{gathered}[/tex]Payment Amount = $840 + $226.8 = $1066.8
Term of 3 years = 3 x 12 = 36months
[tex]\begin{gathered} \text{Add on Interest = }\frac{\text{ \$ 1066.8}}{36} \\ \text{Add on interest = \$29.6333} \\ \text{Add on interest = \$29.63} \end{gathered}[/tex]Therefore the monthly payment for add on interest loan = $29.63
