Richard likes the car price of $10,000 but financing through the dealer is no bargain.He has $2,000 for a down payment,so he needs $8,000 for the loan.Richard borrows $8000 for a period of four years at an add on intrest rate of 11 %.What is the total intrest on the loan?What is the total cost on the car?What is the monthly payment?what is the apr?

$8000 add on interest rate of 11%

8000 x .11 = 880 add on interest/yr
880/yr x 4/yrs = 3520
3520/2 = 1760

1760 total interest on loan
1760 add on interest added to principal

8000 principal + 1760 towards principal
= 9760 total loan principal

9760/48 mo = 203.33/month payment

APR % = (APR x no. yrs)/2
APR % = (11 x 4)/2 = 44/2 = 22%

Total car cost
8000 orig loan
1760 add on interest towards principal
1760 loan interest
11520 sub total
2000 down payment
13520 total cost of car

1760 interest/8000 loan = .22 = 22% APR

To find the total interest on the loan, we can use the formula for Add-On interest:

Total Interest = Principal (Loan Amount) x Interest Rate x Loan Term

In this case, the principal is $8,000, the interest rate is 11%, and the loan term is 4 years.

Total Interest = $8,000 x 0.11 x 4
Total Interest = $3,520

Therefore, the total interest on the loan is $3,520.

To find the total cost of the car, we need to add the loan amount and the total interest:

Total Cost = Loan Amount + Total Interest
Total Cost = $8,000 + $3,520
Total Cost = $11,520

Therefore, the total cost of the car is $11,520.

To calculate the monthly payment, we can use the formula for Add-On interest:

Monthly Payment = (Principal + Total Interest) / Number of Payments

In this case, the principal is $8,000, the total interest is $3,520, and we'll assume monthly payments over 48 months.

Monthly Payment = ($8,000 + $3,520) / 48
Monthly Payment = $11,520 / 48
Monthly Payment = $240

Therefore, the monthly payment is $240.

To find the Annual Percentage Rate (APR), we can use the formula:

APR = ((Total Interest / Principal) / Loan Term) x 100

In this case, the total interest is $3,520, the principal is $8,000, and the loan term is 4 years.

APR = (($3,520 / $8,000) / 4) x 100
APR = (0.44 / 4) x 100
APR = 0.11 x 100
APR = 11%

Therefore, the APR for this loan is 11%.