Find the finance charge and total installment cost of the loan. Round to the nearest cent.
-Amount financed: $240.00
Down payment: $80.00
Cash price: $320.00
Number of payments: 12
Amount of payment: $29.11

Question

Quizplus · Accepted Answer

To find the finance charge, we need to subtract the amount financed from the total installment cost. Total installment cost = number of payments * amount of payment = 12 * 29.11 = $349.32
$349.32 - $240.00 = $109.32 (finance charge)
To find the total installment cost, we add the amount financed and the finance charge. Total installment cost = amount financed + finance charge = $240.00 + $109.32 = $349.32
Rounding to the nearest cent gives the same answer as D: $109.32; $429.32 To calculate the finance charge, we need to subtract the amount financed from the cash price, which is $320.00 - $240.00 = $80.00.

To calculate the total installment cost, we need to multiply the amount of payment by the number of payments, which is $29.11 x 12 = $349.32.

Then, we add the finance charge and the total installment cost to get the total cost of the loan: $80.00 + $349.32 = $429.32.

Therefore, the answer is D, which is $109.32 for the finance charge and $429.32 for the total installment cost.

Find the Finance Charge and Total Installment Cost of the Loan