Peg Gasperoni bought a $$50,000$ Mfe insurance policy for $$300$ per year, Ryan Life Insurance Company sent her the following biling instructions along with a premium plan example:

Tour insurance premium nobice will be maled to you in a few days. You may pay the entire premium in full without a finance charge or you may pay the premium in installments after a down payment and the balance in monthly installments of $575.$ The finance charge will be added to the unpaid balance. The finance charge is based on an annual percentage rate of $15\%.$

$\backslash$table$[[5364,575,00,$$$223\mathrm{.}00,3,$$$75\mathrm{.}00,$$$5\mathrm{.}94,5305\mathrm{.}94],[],[95,90,305\mathrm{.}60,5,75\mathrm{.}00,9\mathrm{.}91,515\mathrm{.}21],[509,120,00,505\mathrm{.}60,6,75\mathrm{.}00,15\mathrm{.}21]]$

Peg feels that the finance charge of $$5\mathrm{.}94$ is in error.

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

Note: Round your answer to the nesrest cent.

$$

Finance Charge

b$.$ Is she correct?

Yes

$$ No

Prox

$1$ of $4$

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