Question

Your local T-Spirit store is having a sale on the latest i-razpod cell phone. The store is also offering financing to those who

qualify. The new cell phone is on sale for $150.00 with a two year contract. The sales associate informs you that the
closed-end installment loan offered by the store is a 24 month installment plan with monthly payments of $8.44.
Determine the finance charge (interest) of the installment loan.
a $52.00
c. $54.30
b. $52.56
d. $56.10

Answer 1

B. 52.56

Step-by-step explanation:

I meant to choose B and accidentally chose A. Says the answers b

Answer 2

$52.56

Step-by-step explanation:

first, figure out how much you'll be paying during the 24 months.

8.44 x 24 = 202.56

subtract 150, the original price of the phone, from 202.56, the price you would be paying over 24 months.

202.56 - 150 = 52.56

the finance charge is $52.56.