Question

Find the finance charge in dollars for the following problem. Choose the right answer. Jon Hall purchased a new CD player on an installment loan. The CD player was $250.00. He agreed to pay $25 a month for 12 months. What is the finance charge in dollars?

Answer 1

the answer would be $50.

Answer 2

`50 dollars\\`

Explanation:

The amount paid per month
`= 12 dollars\\`

The total amount paid at the end of 12 months

`= $ 25 * 12\\= 300 dollars\\`

The finance charged is the amount over and above the cost of CD player

`= 300 - 250\\= 50 dollars\\`