Pavel needs $1,600 to repair damage done to his boat by a storm, but he doesn’t have enough in savings to cover the cost right now. He compares the following options for getting a loan:

• a car title loan with a $173 charge that must be paid off in two weeks or he loses ownership of his car

• a personal installment loan from his bank that must be paid off in three equal monthly payments of $600

Finish calculating the installment loan finance charge for three months by calculating the total interest using the appropriate formula.

$800

$200

$400

$280