I am so lost trying to figure this out, any advice on how to solve it?

Rita bought a camcorder on the installment plan. The purchase price was $1,500. She paid $500 down and made 12 monthly payments of $102.50. Find the finance charge she paid.

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  • Anonymous
    9 years ago
    Favorite Answer

    How much did Rita pay in total:

    $500 (down payment) + 12 months * $102.50 per month, giving us:

    $(500 + (12 * 102.50)), or:

    $(500 + 1230), or

    $1730.

    What's the original price? $1500. So Rita paid $1730 - $1500, or $230, in finance charges.

    Hope this helps.

  • 9 years ago

    The finance charge would be the Total Paid minus Actual Cost ($1,500)

    This is a very simple problem.

  • 9 years ago

    1500-500-(102.5*12)

    1000-102.5*12

    1000-1230=-230

    $230 in finance charges

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