Question

Elaine purchased A new coffee machine and financed it for one year. The installment price was $3804.50 and the cash price was $3549. Find the amount of finance charge using the formula finance charge = Installment price - cash price. The amount of finance charge is ?

Answer 1

So the finance charge for a new coffe machine is given by:

`\text{ finance charge=Installment price - cash price}`

The installment price was $3804.50 and the cash price $3549. We just need to replace these values in the corresponding position on the equation:

`\text{ finance charge}=3804.5-3549=255.5`

So the finance charge is $255.5