Question

Determine the finance charge on an $8,000 loan with a monthly payment of $162.80 for 60 months.
a.
$29.47
b.
$162.80
c.
$1,768.00
d.
$9,768.00


Please select the best answer from the choices provided

A
B
C
D

Answer 1

C

Total paid = 162.80 × 60 = 9,768.00.
Finance charge = total paid − principal = 9,768.00 − 8,000.00 = 1,768.00.