Select the correct answer. Myra is planning to purchase a recliner that costs \( \$ 1,490 \). The installment plan offered at the furniture store requires a \( 12 \% \) down payment and 20 monthly payments of \( \$ 71 \) each. What will be the finance charge for the installment plan? A. \( \$ 298.00 \) B. \( \$ 179.80 \) C. \( \$ 108.80 \) D. \( \$ 70.00 \)

To determine the finance charge for Myra's installment plan, we first need to calculate the total cost of the recliner with the given payment structure. 1. **Down Payment**: Myra needs to make a 12% down payment on the recliner, which costs $1,490. So, the down payment is: \( 0.12 \times 1490 = \$178.80 \). 2. **Monthly Payments**: The furniture store requires 20 monthly payments of $71. Therefore, the total of the monthly payments is: \( 20 \times 71 = \$1,420 \). 3. **Total Cost**: Now, we can calculate the total amount Myra will pay over the course of the installment plan: Total paid = Down Payment + Total Monthly Payments Total paid = \( 178.80 + 1420 = \$1,598.80 \). 4. **Finance Charge**: Finally, to find the finance charge, we subtract the original price of the recliner from the total amount paid: Finance Charge = Total Paid - Price of Recliner \( 1,598.80 - 1,490 = 108.80 \). Thus, the finance charge for the installment plan is **C. $108.80**.