Question

To Mark or decided to purchase a new DVD player on an installment loan DVD player was $295 Tim agreed to pay $31 per month for 12 months what is the finance charge in dollars?

Answer 1

Answer: ⇒ The finance charge = $77

Step-by-step explanation:

Given: The cost price of DVD player= $295

Since, Tim agreed to pay $31 per month for 12 months .

Therefore, the total amount paid by Tim= $31\times12=\ 372$

The finance charge =$\text{Amount paid by Tim - Cost price of DVD}$

⇒ The finance charge =$\ 372-\ 295$

⇒ The finance charge =$77