Question

Choose the correct finance charge in dollars for the following problem. Tommy Hayden decided to purchase a new moped on an installment loan. The moped was $1,500.00. He agreed to pay $150 a month for 12 months. What is the finance charge in dollars? The finance charge is $ ________

Answer 1

The finance charge is $300.

Explanation:

Given : Tommy Hayden decided to purchase a new moped on an installment loan. The moped was $1,500.00. He agreed to pay $150 a month for 12 months.

To find : What is the finance charge in dollars?

Solution :

Tommy Hayden agreed to pay $150 a month for 12 months.

So, He paid
`150* 12=\$1800`

The moped was $1,500.00.

The finance charge is total paid - the actual price

`\$1800-\$1500=\$300`

Therefore, The finance charge is $300.

Answer 2

For the answer to the question above asking what is the finance charge in dollars?
first, multiply 150 by 12 most.
and the answer would be 1,800
then deduct 1,800 with the 1,500
and you'll get 300

Who will pay for a mop worth 1800? not even for 300