A-D

Unit 2 Problem Set oblem Set 0 Help Save & Exit Subm Check my work After visiting several automobile dealerships, Richard selects the used car he wants. He likes its $10,000 price, but financing through the dealer is no bargain. He has $1,500 cash for a down payment, so he needs an $8,500 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 $8,500 for a period of four years at an add-on interest rate of 10 percent. s is quoted at ado 58,500 loan. In 10.000 price, (a) What is the total interest on Richard's loan? (Do not round intermediate calculations. Round your answer to the nearest whole number) Total interest (b) What is the total cost of the car? (Do not round intermediate calculations. Round your Total cost (c) What is the monthly payment? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Monthly payment Idi What is the annual percentage rate (APRI? (Do not round Intermediate calculations. Enter vour answer as a percent rounded to 2