Answer:
B. $715.21
Step-by-step explanation:
Apparently, Margaret makes her first payment after she has incurred a finance charge on the amount.
At the end of the first month, the balance due is ...
... 692.77×(1 + 0.217/12) = 705.30
At the end of the second month, the balance due is ...
... (705.30 -290)×(1 +0.217/12) = 422.81
At the end of the third month, the balance due is ...
... (422.81 -290)×(1 +0.217/12) = 132.81
Margaret makes total payments of $290×2 +132.81 = $712.81
Of the choices listed, the best selection is ...
... B. $715.21
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<em>Comment on the answer choice</em>
The total $715.21 seems to also include a finance charge on the final payment amount. (It actually includes a charge on $132.72, which is slightly different from the final payment amount.) There will not be any such charge, so the <em>available answer choices are all in error</em>.
Actually, we expect the total cost to be closer to $702.25, because we expect that Margaret will make her first payment before any finance charges are incurred.
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You should ask your teacher to show you in detail how to work this problem.
