Tim Worker decided to purchase a new DVD player on an installment loan. The DVD player was $365.00. Tim agreed to pay $36.00 per month for 12 months. What is the finance charge in dollars?

Lets solve for the finance charge in dollars when Tim agreed to pay $36 for 12 months. We formulate an equation by enumerating the following:

1.) Total amount that Tim paid for the DVD player is $36 times 12 months is equal to $432.

2.) Total amount paid is the summation of DVD player original price plus the result of multiplication of finance percent charge and original price.

Equation is $365 + ($365x%charge) = $432.

Solve for % charge,

%charge = ($432-$365) / $365

%charge = 0.1834 or 18.4%

Therefore, the finance charge in dollar is $67.