Answer:
$320.00 is the finance charge for Travis Whitaker.
Explanation:
A finance charge is any fee representing the cost of credit, or the cost of borrowing. It is the interest added on, and some forms of credit, fees charged for. A finance charge includes not only interest but other charges as well, such as “financial transaction fees”.
Travis Whitaker borrows = $2000 for 2 years
Rate = 8% = 0.08
[tex]\text { Year }=2 \text { year }=365 \times 2=730 \text { days }[/tex]
Finance charge = (average balance × annual percentage rate × number of days in the billing cycle)
[tex]\text { Finance charge }=(\$ 2000 \times 0.08 \times 2)[/tex]
[tex]\text { Finance charge }=\$ 320[/tex]
The finance charge is $320.00.
