-BrownEyedBeauty-
New member
Richard finds a car for $10,000. He has $2,000 to put down, but must take out an $8000 loan. During his search, he finds that the interest on most auto loans is quoted as add-on rates(the life of the loan, interest is paid in the full amount borrowed even though a portion of the prinicpal has been paid back). Richard borrows the $8000 for 4 years with an add-on interest rate of 11%. What is the total interest on Richard's loan? What is the cost of the car? What is the monthly payment? What is the APR?