Question

A local diner purchased a jukebox for 9400. The business makes a down payment of 1000 and agrees to pay 36 payments of 275 per month find the finance charge.

$10,900
$3,600
$1, 500
$8,400

Answer 1

Option (3). $1500

Explanation:

Cost price of the jukebox = $9400

Down payment made by the diner = $1000

Diner agreed to pay the rest amount by $275 per month for 36 months

Total amount to be paid by the diner = Down payment + monthly payments

= 1000 + 275×36

= 1000 + 9900

= $10900

Finance charge = 10900 - 9400

= $1500

Therefore, option (3). 1500 will be the answer.