Jon Hall purchased a new CD player on an installment loan. The CD player was $250.00. He agreed to pay $25 a month for 12 months. What is the finance charge in dollars?

Question

asked May 17, 2018 108k views

2 Answers

Jeffrey Theobald · Answer 1 · 2018-05-19T01:33:15+0000

Answer: 50

Explanation:

Jom Hall purchased a new CD player on an installment loan. The CD player was $250.00.

He agreed to pay $25 a month for 12 months.

Total amount he agreed to pay for 12 months

= 25 * 12= 300

The cost of CD player = 250

Amount agree to pay = 300

So finance charge = Amount agreed to pay - cost of CD player

= 300 - 250 = 50