Question

To Mark or decided to purchase a new DVD player on an installment loan DVD player was $295 Tim agreed to pay $31 per month for 12 months what is the finance charge in dollars?

Answer 1

Answer: ⇒ The finance charge = $77

Explanation:

Given: The cost price of DVD player= $295

Since, Tim agreed to pay $31 per month for 12 months .

Therefore, the total amount paid by Tim=
`31*12=\$372`

The finance charge =
`\text{Amount paid by Tim - Cost price of DVD}`

⇒ The finance charge =
`\$372-\ $295`

⇒ The finance charge =$77