Problem 7.9 Calculating the Total Cost of a Purchase, the Monthly Payment, and an APR [LO7-2] After visiting several automobile dealerships, Richard selects the used car he wants, He likes its $12,900 price, but financing through the dealer is no bargain. He has $2,500 cash for a down payment, so he needs an $10.400 loan. In shopping at several banks for an instaliment 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 $10,400 for a period of four years at an add-on interest rate of 10 percent. a. What is the total interest on Richard's loan? Note: Do not round intermediate calculations. Round your answer to the nearest whole number. b. What is the total cost of the car? Note: Do not round intermediate calculations. Round your answer to the nearest whole number. c. What is the monthly payment? Note: Do not round intermediate calculations. Round your answer to the neorest whole number