Question

Gary is buying a $1,250 computer on the installment plan. He makes a down payment of $150. He has to make a monthly payment of $48.25 for 2 1/2 years. What is the finance charge?

Answer 1

@aum

Answer 2

Exactly the same method as the previous one.

Answer 3

so 1250 * 55?

Answer 4

+ 150?

Answer 5

Monthly payment = $48.25
Duration of payment = 2 1/2 years = 2.5 * 12 months = 30 months
Total monthly payment = ?

Add down payment of $150 to above. That will be the total amount paid. Subtract $1,250 to find the finance charge.