Your friend just purchased a new sports car for $32,000. He received $6,000 for his trade in and he used that money as a down payment for the new sports car. He financed the vehicle at 6.76% APR over 48 months with a monthly payment of $619.15. Determine, from the given information, the finance charge.

The trade-in is used as a $6,000 down payment, so the amount financed is $32,000 − $6,000 = $26,000. Over 48 months, the total payments are $619.15 × 48 = $29,719.20. The finance charge is the total paid minus the amount financed: $29,719.20 − $26,000 = $3,719.20, choice A.

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