Question

A customer charges a treadmill at Sports Equipment Shop. The price is $5,000 and the financing charge is 6% per annum if the bill is not paid in 30 days. The customer fails to pay the bill within 30 days and a monthly finance charge is added to the customer's account. What is the amount of the monthly finance charge?

Answer 1

$25

Step-by-step explanation:

The price is $5000, and the financing charge is 6% per annum.

That means the charge for a single month would be,

=> (5000 * 0.06) / 12

=> $25.

Hope this clear things up.

Thankyou.