What is the amount of each required monthly payment

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Problem 1: The Watson family has been planning a vacation to Europe for the past two years. Gratton Savings agrees to advance a loan of $7,200 to finance the trip provided the Watsons pay the loan back in 12 equal monthly installments. Gratton will charge an add-on loan rate of 6%. How much in interest will the Watsons pay under the add-on loan rate method? What is the amount of each required monthly payment? What is the effective loan rate in this case? Show all calculations

Reference no: EM132996144

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