Question

A mountain bike has a cash price of $600,00. Eric purchases the bike by making a down payment of $18.00 and 24 payments of $33.71 Find the finance charge.O A $58200B. $227.04OC. $291.00 D. $18.00

Answer 1

Step-by-step explanation

From the statement, we know that:

• the original price of the bike is $600.00,

,

• Eric purchases the bike by making a down payment of $18.00,

,

• and 24 payments of $33.71.

The final price of the bike is the sum of the down payment and the 24 payments:

`FP=\text{ \$18.00 }+24*\text{\$33.71}=\text{ \$827.04.}`

The finance charge is the difference between the final price and the original price:

`FC=FP-OP=\text{ \$827.04}-\text{\$600.00}=\text{ \$227.04.}`Answer

B. $227.04