Karen and Wayne need to buy a refrigerator because theirs just broke. Unfortunately, their savings account is depleted, and they will need to borrow money in order to buy a new one. Sears offers them an installment loan at 14% (add-on rate). If the refrigerator at Sears costs $1,598 plus 5% sales tax, and Karen and Wayne plan to pay for the refrigerator for 3 years, what is the monthly payment? (Round your answer to the nearest cent.)

1598x0.14x3=671.16
1598+671.16X36= 25,759.76

1598 * 1.05 = 1677.90 total cost with tax

1677.90 * .14 * 3 = 704.72 total interest

so total amount to be paid = 2382.62

divide by 36 months = 66.18 per month

Note this "add on rate" is a rip off. As you pay the principal back, the amount you owe should decrease. If this were done as a mortgage loan of 1677.90 at 14% for 3 years:
https://www.usbank.com/calculators/CalculatorServlet?calc_name=MortgageLoan&loan_amount=1677.90&term=3&interest_rate=14&prepay_type=Monthly&prepay_amount=0&prepay_starts_with=1&by_year=1&submit=Calculate

57.35 would be the monthly payment

Thank you very much it is greatly appreciated.

To find the total amount to be paid for the refrigerator with a 14% add-on rate, we need to calculate the add-on interest first. The add-on rate is applied to the original loan amount and then added to the original loan amount.

The add-on interest is calculated as:
$1598 x 0.14 = $223.72

Next, we add the add-on interest to the original loan amount:
$1598 + $223.72 = $1821.72

Now, we need to add the 5% sales tax to the total amount:
$1821.72 x 0.05 = $91.09
$1821.72 + $91.09 = $1912.81

To calculate the monthly payments over 3 years (36 months), we divide the total amount by the number of months:
$1912.81 ÷ 36 = $53.14

Therefore, Karen and Wayne would need to pay approximately $53.14 per month for 3 years to pay off the loan.

To calculate the monthly payment for the refrigerator, we first need to find the total amount borrowed, which is the cost of the refrigerator plus the sales tax.

Cost of refrigerator = $1,598
Sales tax = 5% of $1,598 = $79.90

Total amount borrowed = $1,598 + $79.90 = $1,677.90

Next, we need to calculate the total interest paid over the loan term. The add-on rate of 14% is calculated on the total amount borrowed, and the loan term is 3 years.

Total interest paid = Total amount borrowed x add-on rate x loan term
Total interest paid = $1,677.90 x 0.14 x 3 = $702.94

Now, we can calculate the total amount repaid over the loan term, which is the sum of the total amount borrowed and the total interest paid.

Total amount repaid = Total amount borrowed + Total interest paid
Total amount repaid = $1,677.90 + $702.94 = $2,380.84

Finally, we can calculate the monthly payment by dividing the total amount repaid by the number of months in the loan term (3 years = 36 months).

Monthly payment = Total amount repaid / Loan term in months
Monthly payment = $2,380.84 / 36 = $66.41 (rounded to the nearest cent)

Therefore, Karen and Wayne's monthly payment for the refrigerator is approximately $66.41.