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 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 $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 $5.08 is in error. a. What is the actual finance charge for the first three months? Note: Round your answer to the nearest cent. b. Is she correct? Yes No