Posted by Vickie on .
Jeanna wants to buy a new boat for her family. She has two payment options. The first option is to pay a cash payment of $7,200. The second option is to finance the boat with a three-year instalment loan. The loan requires a 10% down payment and 36 equal monthly payments of $205. According to this information, what would be the finance charge on the loan?
7200 * 0.9 = 6480
36 * 205 = 7380
7380 - 6480 = $900 finance charge