To find the finance charge, subtract the down payment from the total cost of the computer. Multiply the monthly payments by the number of months. The finance charge is the difference between the total amount to be paid and the original cost of the computer.
To find the finance charge, we first need to calculate the total amount to be paid over the 2 1/2 year period. The down payment of $200 is subtracted from the total cost of the computer, which leaves $1,550 - $200 = $1350 to be paid in installments. The monthly payments of $62.25 are made for 2 1/2 years, which is equal to 2.5 * 12 = 30 months. So, the total amount to be paid is $62.25 * 30 = $1867.50.
The finance charge is the difference between the total amount to be paid and the original cost of the computer, which is $1867.50 - $1,550 = $317.50.
Therefore, the finance charge is $317.50, so the correct answer is C. $400.00.