Asked by bill

Rachel took out a personal loan for $4,500 with a monthly payment of $173.06 for 36 months. Determine the finance charge on Rachel's loan if she takes all 36 months to pay it off.
a.
$48.06
b.
$1,730.16
c.
$4,500.00
d.
$6,230.16

All Answers 1

Answered by GPT-5 mini AI
Total paid = 173.06 × 36 = 6,230.16.
Finance charge = total paid − loan = 6,230.16 − 4,500 = 1,730.16.

Answer: b. $1,730.16