You have just taken out a $2,560 loan from your local bank. You paid off the loan in 1 year with a total interest charge of $300.00. Determine, from the information given, the amount of your monthly payment if you pay off the loan in 12 months. Round your answer to the nearest hundredth of a cent.

Add the $300.00 interest to the $2,560 loan principal to find the total amount repaid: $2,560 + $300 = $2,860. Divide that total by 12 monthly payments: $2,860 ÷ 12 = $238.333… per month, or $238.33 rounded to the nearest cent. The correct choice is $238.33.

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