1. **State the problem:** Josie wants to buy a guitar priced at 2240 with a 15% down payment. The remaining balance plus a finance charge is paid monthly over 2 years with monthly payments of 88.75. We need to find the finance charge. 2. **Identify the known values:** - Guitar price $P = 2240$ - Down payment rate $d = 15\% = 0.15$ - Monthly payment $M = 88.75$ - Duration $t = 2$ years = 24 months 3. **Calculate the down payment:** $$\text{Down payment} = d \times P = 0.15 \times 2240 = 336$$ 4. **Calculate the remaining balance after down payment:** $$\text{Remaining balance} = P - \text{Down payment} = 2240 - 336 = 1904$$ 5. **Calculate total amount paid over 2 years:** $$\text{Total paid} = M \times t \times 12 = 88.75 \times 24 = 2130$$ 6. **Calculate the finance charge:** $$\text{Finance charge} = \text{Total paid} - \text{Remaining balance} = 2130 - 1904 = 226$$ **Answer:** The finance charge is $226$.