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?

Question

Quizplus · Accepted Answer

The finance charge on a loan includes all costs of borrowing beyond the principal amount. For Sachi, this includes the $2,400 interest plus the $250 loan fees, totaling $2,650.

Sachi Borrowed $7,000 to Purchase a Used Car