Cimarron Homes Inc

Multiple Choice

Cimarron Homes Inc. purchased a snow plow for $50,000 and financed the full amount for 8 years at an annual simple interest rate of 9%.
a. Find the interest due on the loan.
b. Find the monthly payment.
Round your answer to the nearest cent.

A) a) $36,000; b) $1075.00
B) a) $43,200; b) $895.83
C) a) $36,000; b) $895.83
D) a) $43,200; b) $1075.00
E) a) $895.83; b) $43,200