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The total cost to purchase a set of premium golf clubs is $1,980.48. The Golf Shop is offering a financing...

23. The total cost to purchase a set of premium golf clubs is $1,980.48. The Golf Shop is offering a financing special: Golfers can buy the set with a downpayment of $100 and 18 months of payments of $117.58.
What is the total finance charge at the end of the 18 months?
○ $2,216.44
○ $235.96
○ $35.96
○ $2,116.44

Answer

To find the total finance charge, first calculate the total amount paid through financing:

  1. Total payments over 18 months: 18 × $117.58 = $2,116.44
  2. Add the downpayment: $2,116.44 + $100 = $2,216.44
  3. Subtract the original cost: $2,216.44 - $1,980.48 = $235.96

The total finance charge is $235.96.

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