You purchase a new mountain bike for $1,575. You put a 10% down payment and $65.56 per month on a 24 month purchase plan. Determine the total finance charge. a. $153.22 c. $155.94 b. $154.20 d. $156.23

1. Determine the down payment amount

$1,575 x 10% = $157.5 ⇒ first payment

2. Determine the total payment to be made for 24 months

$65.56 x 24 = $1,573.44 ⇒ total payment for 24 months

3. Add the first payment and the total payment for 24 months

$157.5 + $1,573.44 = $1,730.94 ⇒ total amount of bike including the finance charge

4. Determine the finance charge

$1,730.94 - $1,575 = $155.94 ⇒ Answer (C)