You obtain a loan of $3,000 to be repaid over one year. Assume you are charged 12% interest based on the add-on method. You monthly payments would be

A) $280.
B) $300.
C) $360.
D) $270.

Answer: A
Explanation: A) $3,000 × .12 = $360; $3,000 + $360 = $3,360; $3,360/12 = $280

Business

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