Question

Papa PePe's Pizza purchased a used pizza oven for $9785. The company makes a down payment of $1000 and agrees to 36 monthly payments of $278.45 per month. Find the total finance charge.

Answer 1

$1,239.2

Step-by-step explanation:

finance charge refer the cost of using credit funds. It is the total amount a borrower pays to lender on top of the amount borrowed.

In this case, the total amount the customer paid for the oven

The deposit $1000.00

Monthly installment; $278.45 x 36= $10,024.2

Total amount paid =$278.45 +$10,024.2

=11,024.2

finance charge = total amount paid - cost of the item

= $11,024.2 - $9,785.

=$1,239.2