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Peg Gasperoni bought a $50,000 life insurance policy for $230 per year. Ryan Life Insurance Company sent her the following billing instructions along with a
Peg Gasperoni bought a $50,000 life insurance policy for $230 per year. Ryan Life Insurance Company sent her the following billing instructions along with a premium plan example: "Your insurance premium notice will be malled 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 instaliments after a down payment and the balance in monthly installments of $60. 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 $3.57 is in error. a. What is the actual finance charge for the first three months? Note: Round your answer to the nearest cent
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