Rachel took out a personal loan for $4,500 with a monthly payment of $173.06 for 36 months. Determine the finance charge on Rachel's loan if she takes all 36 months to pay it off.

Multiply the monthly payment by 36 months: $173.06 × 36 = $6,230.16 in total payments. Subtract the original loan amount, $4,500, to find the finance charge: $6,230.16 − $4,500 = $1,730.16. The finance charge is $1,730.16 (choice b).

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