In order to determine the finance charge, proceed as follow:
Calculate the 20% of 2,038:
[tex]\frac{20}{100}\cdot2038=407.6[/tex]Then, the inial amount John pays is $407.6.
The next three years he pays $50.49 per month, which is a total of:
$50.49*36 = $1,817.64 (you multiplied by 36 because 3 years have 36 month)
Then, the total amount of money John pays is:
$407.6 + $1,817.64 = $2,225.24
The original price of the TV was $2,038. The finananca charge is the difference betwee the previous result and the original price:
finance charge = $2,225.4 - $2,038 = $187.24
The finance charge is
