After visiting several automobile dealerships, Richard selects the car he wants. He likes its $14,500 price, but financing through the dealer is no bargain. He has $2,900 cash for a down payment, so he needs a loan of $11,600. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $11,600 for a period of five years at an add-on interest rate of 10 percent.

a. What is the total interest on Richards loan?

b.What is the total cost of the car?

c. What is the monthly payment?