Question

Dan bought a home theater system for $178.99 on the installment plan. The term of the contact said that he would pay $35 a month for 6 months. How much are his total payment.
$30.01
$210
$178.99
$35

2. How much is Dan's finance charge?
$31.01
$210
$178.99
$35

Answer 1

Given that Dan bought a home theater system for $178.99 on the installment plan, and the terms of the contract is such that he will pay $35 in 6 months.
The total amount he paid by the end of the term will be:
amount=(monthly payment)*(number of months)
=35*6
=$210

b] Dan's Finance charge will be given by:
(total amount he paid)-(price of home theater)
=210-178.99
=$31.01