Peg Gasperoni bought a $$50,000$ life insurance policy for $$320$ per year. Ryan Life Insurance Company sent her the following billing

instructions along with a premium plan example:

"Your insurance premium notice will be mailed 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 $$80.$ The finance charge

will be added to the unpaid balance. The finance charge is based on an annual percentage rate of $12\%.$

Peg feels that the finance charge of $$5\mathrm{.}08$ is in error.

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

Note: Round your answer to the nearest cent.

Finance Charge

b$.$ Is she correct?