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konstantin123 [22]
3 years ago
13

Emma Weber purchased a bedroom set with an installment loan that has an APR of 12%. The bedroom set sells for $2,650. The store

financing requires a 15% down payment and 42 monthly payments. What is the finance charge?
Mathematics
1 answer:
ipn [44]3 years ago
6 0

Answer:

$520.28

Step-by-step explanation:

The finance charge is the amount that Emma will pay in order to cover the processing costs of the bedroom set. In this case it would be $520.28. You have first find the down payment cost ($384) and then find how much she needs to pay each month to cover the rest of the cost ($66.34) and multiply it by the 42 months to get $2786.28. Add the down payment onto that and subtract the original cost and you will get your finance charge of $520.28. Hope this helps!

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