Answer:
The finance charge for the professional racing bicycle is $552.5.
What is the percentage?
A percentage is a value per hundredth. Percentages can be converted into decimals and fractions by dividing the percentage value by a hundred.
Given Lisa purchased a professional racing bicycle that sells for $3000 including tax.
She made a downpayment of $200,
∴ In 2 and 1/2 years or 30 months, she had to pay $(3000 - 200) = $2800.
Given she pays $111.75 dollars per month,
∴ In 30 months she will pay (111.75×30) = $3352.5.
So the amount she needs to pay as a finance charge is (3352.5 - 2800)
= $552.5, as she already paid $200 as a downpayment, and on the rest of the amount she is paying 111.75 dollars for 30 months.
Explanation:
3,352.50+ 200 =3,552.50 - 200 = 3,252.5
Hope this helps!