$2$

Peg Gasperon bought a $$50,000$ Ife msurance polky for $$100$ per year. Hyan Lite insurance Company sent her the following biting instructions along weh a premium plan example:

$10$

pows

"Your inarance premam notice wall be maled to you in a few days You may pay Pre ertre premeum in fall withouf a finance charge or you may pay the premium in instaliments after a down payment and the balance in monthly instalmevts of $530.$ The finance charge will be adoled to the unpaid balance. The finance charge is based on an annal percevtage rate of rist.

enose

$\backslash$table$[[$If the tatal pelicy prentue isi,And you FHI doni,The balimest Rubject te fisance shargy alll bel,The tetal mabier of montwly Inctallepent $(5$Me sinimen$)$ a$111$ ber,The methly Installeem brfore sasing the flasece charge will bet,The tetal finance sharge for all festallents alll bel,and the tetal. afferred peraent price $411$ ber$],[5$ tee,$ $30\mathrm{.}40,178\mathrm{.}60,3,519\mathrm{.}60,11\mathrm{.}73,5101\mathrm{.}75],[209,5$e$.$es$,194.$es$,5,30\mathrm{.}0$e$,5\mathrm{.}67,205\mathrm{.}69],[300,75\mathrm{.}06,235\mathrm{.}60,8,10,90,12\mathrm{.}84,712\mathrm{.}84]]$

Eetrretiont

Peg feets that the finance charge of $$175$ is in ernoc.

a$.$ What is the actual finance charge for the first three months?

Note: Aound your answer to the nesrest cent.

Fhance Charge

b$.$ Is she correct?

$$ Yes

$$ No

Prex

$2$ of $4$

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