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 threeyear 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?

math 
Ms. Sue,
7200 * 0.9 = 6480
36 * 205 = 7380
7380  6480 = $900 finance charge