math
posted by Terry .
Wallace and Sarah purchased furniture for their new home. They had two payment options. The first option is to pay a cash payment of $4200. The second option is to finance the furniture with a two year installment loan. The loan requires 12% down payment and 24 equal monthly payments of $195. According to this information what would be the finace charge on the loan.

4200 * 0.12 = 504 down payment
4200  504 = 3696
195 * 24 = 4680
4680  3696 = 984 finance charge
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