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.

The 10% down payment is $1,575 × 0.10 = $157.50, so the amount financed is $1,575 − $157.50 = $1,417.50. The 24 monthly payments total $65.56 × 24 = $1,573.44. Subtracting the amount financed gives a finance charge of $1,573.44 − $1,417.50 = $155.94, which is choice C.

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