For a new Madden video game, EA Sports decides to have Patrick Mahomes on the cover and run an ad campaign on ESPN. After the ad
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The correct amount of finance charge on such loan by paying the monthly amount will be $1768 for a total period of 60 months. So, the correct option that matches the statement will be C.
The finance charge can be calculated by multiplying the monthly payment amount to the number of months such amount is paid by using simple multiplication formula.
- Finance charge is referred to as such charge that is the cost born by the person to acquire such facility of getting finance by repayment at regular and predetermined intervals.
- The finance charge can be calculated by using the formula as given under,
- Now we will put the given values as loan amount $8000, Monthly payment $162.80 and number of months in the formula to obtain the values as under,
- This can also be written as,
- So the total finance charge born on an $8000 loan will be $1768.
Hence, the correct option is A that the finance charge paid on the loan of $8000 will be $1768.
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