Question

Wallace and Sarah purchased furniture for their new home. They had two payment options. The first option is to pay a cash payment of $4200. The second option is to finance the furniture with a two year installment loan. The loan requires 12% down payment and 24 equal monthly payments of $195. According to this information what would be the finace charge on the loan.
Ms. Sue
4200 * 0.12 = 504 down payment

4200 - 504 = 3696

195 * 24 = 4680

4680 - 3696 = 984 finance charge