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.
