Karen and Wayne Need to Buy a Refrigerator Because Theirs

Multiple Choice

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 11% (add-on rate) . If the refrigerator at Sears costs $1,500 plus 5% sales tax, and Karen and Wayne plan to pay for the refrigerator for 4 years, what is the monthly payment?

A) $51.98
B) $47.25
C) $42.53
D) $45.00
E) $34.86