Question

Becky bought a digital camera on the installment plan. The purchase price was $859.95. She paid $150 down and made 12 monthly payments of $65.25. Find the finance charge she paid.

Answer 1

The finance charge is the extra amount charged on installmental payments. It is the difference between the purchase price and the total amount paid on installment plan.

Total amount spent

= $150 + 12 * $65.25

= $933

Finance charge = $933 - $859.95

= $73.05