Question

Tim worker decided to purchase a new DVD player on an installment loan the DVD player was $365. Tim agreed to pay $36 per month for 12 months what is a finance charge in dollars

Answer 1

finance charge in dollars = $67

Explanation:

DVD player was $365

Tim agreed to pay $36 per month for 12 months

Total amount agreed to pay = 36 * 12 = $432

cost of DVD is 365

Total amount agreed = cost of DVD + cost of DVD * % charge

432 = 365 + 365* % charge

Subtract 365 on both sides

67 =365* % charge

Divide by 365 on both sides

% charge =0.1835616

finance charge in dollars = $67