A cell phone has a purchase price of 299 The phone can be fi

A cell phone has a purchase price of $299. The phone can be financed by putting $100 down and paying $20.50 a month for 12 months. Find (a) the amount financed, (b) the total monthly payments, and (c) the total finance charge.

Solution

a) Total Amount Financed = 100 + 20.50 * 12 = 100 + 246 = 346$

b) Total Monthly Payments = 20.50 * 12 = 246$

c) Total Finance Charge = Total Amount Financed - Cost of Phone

=> 346 - 299

=> 47$