Katie cole purchased a mountain bike with an installment loan that has an apr of 14%. the mountain bike sells for $762. the store's financing requires a 15% down payment and 24 monthly payments. what is the finance charge? (wait until the end of your calculations to round your answer.)

Answer-

Finance charge is $99

Solution-

Price of  mountain bike = $762

The store's financing requires a 15% down payment, so the present value of annuity will be,

We know that,

Putting  the values,

With a monthly payment of this, he will be paying in 24 months will be,

Then,

The extra amount he will be paying,

because they could drop even lower..