The amount of finance charges for the loan amount of $6,500 is $<em><u>17.15</u></em>
The finance charge is the extra amount for holding the loan amount until the maturity period. It is mostly the interest amount paid on the entire loan amount.
Computation:
Given,
Principal Amount =$6,500
Interest rate =9.5%
Period of compounding =36 months
First, the annuity formula will be used to determine the entire future value:

Now, the finance charge will be determined by the difference between the Annuity amount and Principal amount.

Therefore, the finance charge is $17.15 is not mentioned in any of the given options.
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