Question

Julie buys a new TV priced at $650 and agrees to pay $63.45 a month for 14 months. How much is the finance charge for this purchase?

Answer 1

63.45 x 14=888.3

888.3 + 650 = 1,538.3

Answer 2

Explanation:

so, if paid in cash right away, it would cost $650.

if financed the TV then costs 14×$63.45 = $888.30

the charge (including interest) to finance the purchase is the difference :

888.30 - 650 = $238.30