A mountain bike has a cash price of $600,00. Eric purchases the bike by making a down payment of $18.00 and 24 payments of $33.71 Find the finance charge.O A $58200B. $227.04OC. $291.00 D. $18.00

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Explanation

From the statement, we know that:

• the original price of the bike is $600.00,

,

• Eric purchases the bike by making a down payment of $18.00,

,

• and 24 payments of $33.71.

The final price of the bike is the sum of the down payment and the 24 payments:

[tex]FP=\text{ \$18.00 }+24\times\text{\$33.71}=\text{ \$827.04.}[/tex]

The finance charge is the difference between the final price and the original price:

[tex]FC=FP-OP=\text{ \$827.04}-\text{\$600.00}=\text{ \$227.04.}[/tex]Answer

B. $227.04

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