Question

Sachi borrowed $7,000 to purchase a used car. The total amount she will need to pay includes the $7,000 she borrowed, $2,400 interest, and $250 loan fees. What is the finance charge on Sachi's loan? O $250. $9,650 $2,650 $2,400.

Answer 1

The finance charge on Sachi's loan is $2,400. This is because the finance charge includes both the interest and the loan fees, which add up to $2,650. Subtracting the loan fees from this total gives us $2,650 - $250 = $2,400. Therefore, the finance charge on Sachi's loan is $2,400.