Tom Brown decided to purchase a new bike on installment loan the bike was $300 he agreed to pay $30 a month for 12 months what i

Question

labwork [276]

4 years ago

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Tom Brown decided to purchase a new bike on installment loan the bike was $300 he agreed to pay $30 a month for 12 months what i

s the financial charge in dollars

Business

1 answer:

aleksklad [387] · Answer 1 · 2021-11-14T03:40:31+03:00

Answer:

$60

Explanation:

A financial charge is the cost of credit. It refers to the fee that one pays for using some credit facility. A financial charge, therefore, is the interest paid on credit granted to a borrower.

In this case: Cost of the Bike was $300

Tom agreed to pay $30 per month for 12 months on installment payment.

The total amount paid:

= $30 x 12

=$360

Original pride of the bike was $300; the financial charge will be

=$360- $300

=$60