Find the Finance Charge and Total Installment Cost of the Loan

question 106

Multiple Choice

Find the finance charge and total installment cost of the loan. Round to the nearest cent.
-Amount financed: $240.00
Down payment: $80.00
Cash price: $320.00
Number of payments: 12
Amount of payment: $29.11

• A)$80.00; $319.75
• B)$120.00; $240.00
• C)$240.00; $429.32
• D)$109.32; $429.32

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Definitions:

Consideration

A concept in contract law that involves something of value exchanged between parties as part of an agreement.

Subrogation

The legal right held by insurers to pursue a third party that caused an insurance loss to the insured.

Secured

Relating to a loan or obligation that is backed by collateral, ensuring the lender has recourse in case of default by the borrower.

Obligation

A legal or moral duty to do or not to do something, often resulting from a contract or promise.