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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?

  • math -

    7200 * 0.9 = 6480

    36 * 205 = 7380

    7380 - 6480 = $900 finance charge

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