contestada

Jennifer bought a brand new treadmill on a credit plan at BeFit Exercise Equipment. BeFit will charge her 18% per year compounded monthly. If her monthly payments will be $150 for 2 years, how much was the original price of the treadmill?

Respuesta :

jushmk
Annual interest rate, i = 18% = 0.18
Period of payments, n = 2 years
Monthly payments, E = $150

The applicable formula is;
P = E [1-(1+i/12)^(-12n)]/[i/12]

Where;
P = Original price of the treadmill

Substituting;
P = 150[1-(1+0.18/12)^(-12*2)]/[0.18/12] = 3004.56

Therefore, the original price of the treadmill was $3,004.56

Otras preguntas