for an installment loan using simple interest and equal payments throughout the use of the loan, interest charged only on the outstanding balance. As each payment is made, more of allocated to reducing the principal. As the principal owed decreases, so too does the interest charged on it. Since the payment is always the same each month, the allocation between principal and interest in always different (more to the principal and lees to the rest) 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 original balance of the loan Eleen and Hubert are taking out installment fans for 11,500 at a stated interest rate of 5%. The term of each loan is slayears Monthly Installment Loan Payments to Repay a $1,000, Simple Interest Loan Number of Monthly Payments Rate of Interest 12 24 36 48 60 72 $85.61 $43.87 $29.97 $23.00 $16.67 $16.10 $14.13 186.07 344.32 $30.42 $23:49 $10.33 $16.57 $14.61 586.53 $44.77 $30.86 $23.95 $19.00 $17.05 $15.09 8 1869 $45.23 $31.34 $24.41 $20.28 517.53 $15.50 9 $67.45 $45.66 $31.80 $24.68 $20.76 $18.03 $16.09 10 387,92 $46.14 $32.27 $25 26 52125 $16.53 $16.00 Answer the following questions in the preceding repayment information table as necessary Eileen Eileen's loan uses simple interest to compute finance charges Eleen's monthly payment rounded to the nearest centis Hubert Hubert's loan uses the add-on method to compute finance charges Hubert's total finance charge rounded to the nearest centis Complete the following tables using an interim que rounded to the nearest cent in your calculation Enter aligures as positive numbers rounded to the nearest cent. (Note: The tables are slightly different to reflect the different methods used for ance charpes) Elleen - Simple Hubert - Add-On Total payments $ Principal 1 Principal $ Finance charge 1 Finance charge Total payments Who paid more for the same loan? Filey whose loan used the simple interest method to compute finance charges Hubert, whose loonused the simple interest method to compute finance charges when leaned the add-on method to compute and charges Hubert, whose loaned the add-on method to compute finance charges