Suppose that you took out a loan with a principal of $24,680. To pay off the principal and the interest, you made quarterly payments of $1,382 for six years. Furthermore, you paid a service charge of $396. What was your total finance charge?

There are 4 quarterly payments each year, so 6 years means 24 payments. The total paid toward the loan is 24 × $1,382 = $33,168; subtracting the $24,680 principal gives $8,488 in interest. Add the $396 service charge to get a total finance charge of $8,884, choice C.

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