Determine the finance charge on an $8,000 loan with a monthly payment of $162.80 for 60 months. a. $29.47 b. $162.80 c. $1,768.00 d. $9,768.00

Hence, the finance charge on $ 8000 loan is:

$ 1768.

Hence, option C is correct.

Step-by-step explanation:

" Finance charge is the extra charge charged by the lender to obtain the profit on their money they have lend for someone's use "

The loan was of amount= $ 8,000.

The monthly payment was =$ 162.80

The loan was paid for 60 months.

Hence the total amount paid for loan=$ (162.80×60)=$ 9768.

Hence, the finance charge is given by:

Finance charge=Amount paid on loan- Amount of loan.

⇒ Finance charge=$ 9768-$ 8000

⇒ Finance charge=$  1768.

Hence, the finance charge on $ 8000 loan is:

$ 1768.

Hence, option C is correct.