Question

A local diner purchased a jukebox for 9400. The business makes a down payment of 1000 and agrees to pay 36 payments of 275 per month find the finance charge.

Answer 1

Answer:

Finance charge = $1500

Step-by-step explanation:

Cost price of  jukebox = $9400

Down payment made by a local diner = $1000

Balance amount to be paid = 9400 - 1000 = $8400

In order to pay the balance amount diner agreed upon the installments = $275 per month for 36 months

Total amount to be paid in 36 months = 275 × 36 = $9900

So extra payment done = Total balance amount - Amount paid in 36 installments

= 9900 - 8400

= $1500

Therefore, finance charge paid by the diner was $1500.