Question

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

Answer 1

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:

$FP=\text{ \ 18.00 }+24\times\text{\ 33.71}=\text{ \ 827.04.}$

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

$FC=FP-OP=\text{ \ 827.04}-\text{\ 600.00}=\text{ \ 227.04.}$Answer

B. $227.04