Clara is buying a new car, and with a trade-in she must finance $14500. She is buying from someone who offers to finance her loan with the add-on interest method (which is a very bad deal for the buyer!). If she makes a down payment of $4000, the annual percent rate is 5.85%, and the loan is to be paid off in 5 years, what is the monthly payment?

In the above problem we had Clara buying a new car, financing $14500 with a trade - in. The annual percentage rate was 5.85%, and the loan was to be paid off in 5 years. If she wants a monthly payment of $200, what down payment must she make?

In the above problem, Clara had planned to make a down payment of $4000 for a five-year add on interest loan. If she makes no down payment and agrees instead to make a monthly payment of $325 for five years, what simple interest rate is she being charged?