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:

APR

APR, or Annual Percentage Rate, is the annual rate charged for borrowing or earned through an investment, inclusive of any fees or additional costs associated with the transaction.

Zero-Interest Financing

A financing arrangement where the borrower does not pay any interest on the borrowed amount, often used as a promotional strategy by retailers.

Monthly Payments

Regular payments made each month, often associated with loans or leases, intended to repay borrowed money plus any applicable interest.

Rate Of Interest

The percentage of an amount of money which is paid for its use for a specified time, often annually.