Calculating and comparing add-on and simple interest loans. Chris Jenkins is borrowing $10,000 for five years at 7 percent. Payments are made on a monthly basis, which are determined using the add-on...

Calculating and comparing add-on and simple interest loans. Chris Jenkins is borrowing $10,000 for five years at 7 percent. Payments are made on a monthly basis, which are determined using the add-on method.

a. How much total interest will Chris pay on the loan if it is held for the full five-year term?

b. What are Chris’ monthly payments?

c. How much higher are the monthly payments under the add-on method than under the simple interest method?