After visiting several automobile dealerships Richard

Last updated: 3/23/2023

After visiting several automobile dealerships Richard selects the used car he wants He likes its 11 800 price but financing through the dealer is no bargain He has 2 000 cash for a down payment so he needs a 9 800 loan 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 9 800 for a period of four years at an add on interest rate of 13 percent a What is the total interest on Richard s loan Do not round your intermediate calculations Round your answer to the nearest whole dollar Total interest b What is the total cost of the car Do not round your intermediate calculations Round your answer to the nearest whole dollar Total cost c What is the monthly payment Do not round your intermediate calculations Round your answer to 2 decimal places