a) to know the total cost of the car we simply multiply the cost per month with the number of months to pay, in equation $160/ month x 24 months, cancelling out the unit of months, the answer is $3,840.
b) To know the cost of finance charge we simply subtract the total cost of the car using credit with its cost, in equation $3,840 - $3,500 = $340.
The finance charge is $340.
