business math
posted by brandi .
financing furniture that costs $4200.00 with a two year installment loan. The loan requires a 12% down payment and 24 equal monthly payments of $195.00. According to this information, what would be the finance charge on the loan?

business math 
Ms. Sue
4200 * 0.12 = 504
4200  504 = 3696 amount financed
24 * 195 = 4680 amount to be paid
4680  3696 = 984 interest charges
984 / 3696 = 0.266 = 27% finance charge
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