Hal Jacobsen purchased a lawn mower priced at $340 on an installment plan. Hal put 10% down and will pay the remaining balance in 12 monthly payments of $36 each. How much is Hal paying in finance charges?

Question

Quizplus · Accepted Answer

The amount Hal put down as a down payment is 10% of $340, which is $34. Therefore, the amount remaining to be paid is $340 - $34 = $306.

Hal will pay $36 per month for 12 months, which results in a total payment of $36 x 12 = $432.

The finance charges can be calculated as the difference between the total amount paid ($432) and the amount borrowed ($306).

Therefore, the finance charges are $432 - $306 = $126.

So, the best choice is C.

Hal Jacobsen Purchased a Lawn Mower Priced at $340 on an Installment