Question

Ashira bought a game system for $280 on the installment plan. She will pay $55 for 6 months.

How much is Ashira's finance charge?

$75.20

$44.88

$50

Answer 1

Therefore, Ashira's finance charge is $50.

Explanation:

To calculate Ashira's finance charge, we need to find the total amount she will pay for the game system through the installment plan and subtract the original purchase price.

Total amount paid = Monthly payment * Number of months

Total amount paid = $55 * 6

Total amount paid = $330

Finance charge = Total amount paid - Purchase price

Finance charge = $330 - $280

Finance charge = $50

Therefore, Ashira's finance charge is $50.