Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman

Exercise 100

Belinda Raven is interested in buying a solar energy system for her home. At Sun-Catchers Inc., she picks out a system for a total cash price of $1,899. The salesperson informs her that if she qualifies for an installment loan, she may pay 10% now as a down payment and finance the balance with payments of $88.35 per month for 24 months.
a. What is the finance charge on this loan
b. What is the total deferred payment price of the system