A guitar manufacturer is making 50 guitars, at $350 each, for a music store. To pay the bill, the music store is taking out a bank loan at 6.4% interest, compounded monthly, with a 12-month term. The...

1. A guitar manufacturer is making 50 guitars, at $350 each, for a music store.

To pay the bill, the music store is taking out a bank loan at 6.4% interest, compounded monthly, with a 12-month term. The bank is offering a choice between two repayment schedules:

• Pay it off in one payment at the end of the term.


• Pay it off in monthly payments. a) If the loan is repaid in one payment, then the total payment will be

$18 620, of which _____ is interest.

1. b) If the loan is repaid in monthly payments, then each payment will be ____    and ____   in interest will be charged.

I need some help and guidenice for this question. I also need the answers.

The blank spaces are for answers, I currently cannot figure out what to do.