Final answer:
The finance charge for the installment plan is calculated by subtracting the original cost of the TV ($1,250) from the total amount paid after the 10% down payment and 24 monthly payments, resulting in a finance charge of $195.
Step-by-step explanation:
To calculate the finance charge for the installment plan of the TV Mark is buying, first, we need to determine the total amount he will pay over the course of the installment plan and then subtract the original cost of the TV.
The cost of the TV is $1,250. Mark is making a 10% down payment which is equal to $1,250 * 10% = $125. The remaining amount to be financed after the down payment is $1,250 - $125 = $1,125. Mark will make 24 monthly payments of $55, which totals to $55 * 24 = $1,320.
The total amount paid through the installment plan is the sum of the down payment and the 24 monthly payments: $125 (down payment) + $1,320 (monthly payments) = $1,445.
To find the finance charge, subtract the original price of the TV from the total amount paid: $1,445 - $1,250 = $195.
Therefore, the finance charge for the installment plan is $195.