Question

Deltora borrowed $7,000 to purchase a used car. The total amount needed to be paid includes the $7,000 borrowed, $2,400 interest, and $250 loan fees. What is the finance charge on Deltora's loan?

A) $7,000
B) $2,400
C) $250
D) $9,650

Answer 1

The finance charge on Deltora's loan is the sum of the interest and loan fees, which equals $2,650. This value is not represented in the provided multiple-choice options.

Step-by-step explanation:

The finance charge on Deltora's loan consists of the interest paid plus any loan fees. In this case, the interest amounts to $2,400 and the loan fees are $250. To calculate the total finance charge, you simply add the interest to the loan fees.

Finance Charge = Interest + Loan Fees
Finance Charge = $2,400 + $250
Finance Charge = $2,650

So, the finance charge on Deltora's loan is $2,650, which is not one of the options provided (A-D), indicating either the question or the provided options may contain an error.