You purchase a new desktop computer for $2,200. you put a 6% down payment and $100 per month on a 24 month purchase plan. determine the total finance charge.

Cost of computer is $2,200. The total amount paid if bought on higher purchase will be:
HP=(down payment)+(total monthly payments)
down payment=6/100×2200=$132
total monthly payments=24×100=$2400
hence the total HP will be:
2400+132
=$2532
Thus the total finance charge will be:
2532-2200
=$332

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