Peg Gasperoni bought a $50,000 life insurance policy for $190 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 $50. The finance charge will be added to the unpaid balance. The finance charge is based on an annual percentage rate of 18%." If the total policy premium is: And you put down: The balance subject to finance charge will be: The total number of monthly installments ($30 minimum) will be: The monthly installment before adding the finance charge will be: The total finance charge for all installments will be: And the total deferred payment price will be: $190 $50.00 $140.00 3 $50.00 $4.35 $194.35 290 70.00 220.00 5 50.00 9.25 299.25 390 95.00 295.00 6 50.00 16.19 406.19 Peg feels that the finance charge of $4.35 is in error. What is the actual finance charge for the first three months? Note: Round your answer to the nearest cent.