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Determine the finance charge on a $6,800 car loan if monthly payments were $158.50 for 48 months.

User Dalilah
by
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1 Answer

9 votes

Answer:

808

Explanation:

Plan

You make 48 payments of 158.50. That gives you the total of what you have paid back.

Equation

Total payment = months * monthly payments

Solution

Total Payment = 48 * 158.50

Total Payment = 7608

Cost of the loan

Finance charge = amount paid - amount loaned

Finance charge = ?

amount paid = 7608

amount loaned = 6800

Finance charge = 7608 - 6800

Answer: Finance charge = 808

User Reshat Belyalov
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