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 an interest rate to the amount borrowed times the number of years in the loan term. The following formula is used to calculate the amount of add$-$on interest:

I $=$ PRT

Or

I $($Interest$)=$ P $($Principal Amount Borrowed$)$ x R $($Interest Rate$)$ x T $($Time of Loan in Years$)$

Consider the following example:

Assume that Alyssa Bloom from Sacramento, California, borrows $$1,500$ for six years at $5\%$ add$-$on interest to be repaid in monthly installments.

Use the add$-$on equation I $=$ PRT$,$ to calculate Alyssa$$s finance charge in dollars: $

Now add the interest in dollars to the original amount borrowed $($the principal$).$ The total amount that Alyssa must repay is $

$.$

Divide the total amount owed by the number of monthly payments $(72$ payments$)$ to obtain Alyssa$$s monthly payment. $($Round the payment to the nearest penny.$)$ Alyssa must make $72$ monthly payments of $

each.