Please help with the question using the graph given.

\fShirley, a recent college graduate, excitedly described to her older sister the $1,400 sofa, table, and chairs she found today. However, when asked she could not tell her sister which interest calculation method was to be used on her credit-based purchase. Calculate the monthly payments and total cost for a bank loan assuming a one-year repayment period and 14 percent interest. Now, assume the slcre uses the addon method of interest calculation Calculate the monthly payment and toml cost with a one-year repayment period and 12 percent interest. Explain why the bank payment and total cost are lower even though the stated interest rate is higher. Click on the table icon to view the MILPF table - The monthly payment for a bank loan assuming oneyear repayment period and 14 percent interest is $ . (Round to the nearest cent.) The total cost for a bank loan assuming one-year repayment period and 14 percent interest is $ . (Round to the nearest cent.) If the store uses the add-on method of interest calculation, the monthly payment with a one-year repayment period and 12 percent interest is $ . (Round to the nearest cent.) If the store uses the add-on method of interest calculation, the total cost with a one-year repayment period and 12 percent interest is $ . (Round to the nearest cent.) Explain why the bank payment and total cost are lower even though the stated interest rate is higher. (Select the best choice below.) 0 A. The bank payment ($125.70 versus $130.67) and total cost ($1,508.40 versus $1,568.04) are lower. With the bank loan, although your loan payment remains constant, as you pay of! more of the loan each month, your interest expense declines. Therefore, your principal payment amount increases. Because you're paying interest only on the unpaid balance, you just pay interest on what you owe. The add-on method is more expensive because it assumes that you have the entire loan balance outstanding for the entire period; rather than a decreasing balance, as is taken into account by the bank loan. 0 B. The bank payment ($125.70 versus $130.67) and total cost ($1,508.40 versus $1,568.04) are lower. The bank loan assumes that you have the entire loan balance outstanding for the entire period; rather than a decreasing balance, as is taken into account by the add-on loan. The add-on method is more expensive because, although your loan payment remains constant, as you pay oft more of the loan each month, your interest expense declines. Therefore, your principal payment amount increases because you're paying interest only on the unpaid balance