Part D

After visiting several automobile dealerships, Richard selects the car he wants. He likes its $14,000 price, but financing through the dealer is no bargain. He has $2,800 cash for a down payment, so he needs a loan of $11,200. 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 $11,200 for a period of five years at an add-on interest rate of 10 percent. a. What is the total interest on Richard's loan? Total interest $ 5,600 b. What is the total cost of the car? Total cost $ 19,600 c. What is the monthly payment? Monthly payment $ 280 d. What is the annual percentage rate (APR)? (Enter your answer as a percent rounded to 2 decimal places.) APR