Question 117481
First, calculate the total interest you have to pay:

{{{I=A*i*N}}}
where:
I = total amount of interest paid
A = loan amount
i = interest rate per time period
N = number of time periods covered by the loan

So in your case:
{{{I=(1000)*0.06*1}}}
{{{I=60}}}

Note that for the "discount method," the amount of money you receive as a borrower already has the interest deducted from it. So you will actually be receiving, called the loan proceeds and represented by 'L' is:

{{{L=1000-60}}}
{{{L=940}}}

So even though you got only $940 from the bank, the payments are based on 'A' which is the loan amount of $1000. Since you are repaying this on a 12 month installment loan, the monthly loan payments are:

{{{Monthly Payment=1000/12}}}
{{{Monthly Payment=83.33}}}

Good Luck,
tutor_paul@yahoo.com