9. Calculating an installment loan payment using the add-on method Aa Aa Calculating the loan payment on an add-on interest installment loan Installment loans allow borrowers to repay the loan with periodic payments over time. They are more common than single-payment loans because it is easier for most people to pay a fixed amount periodically (usually monthly) than budget for paying one big amount in the future. Interest on installment loans may be computed using the simple interest method or the add-on method The add-on method is a widely used technique for computing interest on installment loans. With the add-on method, interest is calculated by applying the stated interest rate to the charges using the add-on method are computed using the simple interest formula: balance of the loan. Finance Fs = P x r x t In the equation, Fs is the finance charge for the loan. What are the other values? P is the r is the stated t is the term of the loan in amount of the loan. rate of interest You're borrowing $8,000 for a year with a stated annual interest rate of 6%. Complete the following table. (Note: Round your answers to the nearest dollar.) Principal Finance charge Total payback $8,000 You will make monthly payments throughout the life of the loan, in this case,m months What will your monthly payments be? Round your answer to the nearest cent.$