antoni gaudi purchase a bedroom set with an installment loan that has an APR of 12%. The bedrooms that sells for $2650. The store financing requires a 15% down payment and 42 monthly payments. What is the finance charge?

Answer:Total Finance cost $ 517Step-by-step explanation:Down payment paid = 15 % of $ 2650                                   = (15 / 100 ) * 2650                                  = $ 397.5Amount left to be paid =  $2650 - $ 397.5                                       = $ 2252.5Since antoni gaudi purchase with an installment loan that has an APR of 12%Monthly payment = [tex]Loan * r / 12 * ( 1 + r/12) ^ n /( ( 1+ r/12) ^ n^- ^1)[/tex]r = 12 % = 0.12n = 42 Putting values we get,Monthly Payment = [tex]2252.5 * 0.12 / 12 * ( 1+ 0.12 / 12) ^ 4 ^2 / (( 1+ 0.12 / 12) ^ 4 ^2 ^-^1))[/tex]Monthly payment = 65.94Since payments are for 42 months so,Total payments = 42 * 65.94                           = $ 2769.48Total Finance cost = Total payments  - Amount left to be paid                                = 2769.48 - 2252.5                                = 516.98                                =~ $ 517