Find the finance charge and total installment cost of the loan. Round to the nearest cent.
-Amount financed: $170
Down payment: $40
Cash price: $210
Number of payments: 18
Amount of payment: $10.69

Question

Quizplus · Accepted Answer

First, we need to find the total amount paid for the item by multiplying the number of payments by amount of payment: 
18 x $10.69 = $192.42
Next, we need to find the total amount of financing by subtracting the down payment from the cash price: 
$210 - $40 = $170
To find the finance charge, we subtract the amount financed from the total amount paid: 
$192.42 - $170 = $22.42
Therefore, the finance charge is $22.42 and the total installment cost is $232.42. The answer is C.

Find the Finance Charge and Total Installment Cost of the Loan