Answer-
The finance charge is $295.84
Solution-
We know that,
[tex]\text{Finance charge}=\text{Total amount paid}-\text{Original cost}[/tex]
As the original cost of the drum is = $1972
She paid 20% as down payment. So the amount of down payment is,
[tex]=1972\times \dfrac{20}{100}=\$394.40[/tex]
She has to pay 36 monthly payments of $52.04 each. So the amount to be paid is,
[tex]=36\times 52.04=\$1873.44[/tex]
So the total amount paid will be,
[tex]=1873.44+394.40=\$2267.84[/tex]
Therefore, the finance charge is [tex]2267.84-1972=\$295.84[/tex]
