A washer-dryer combination can be purchased from a department store by making monthly credit card payments of $46.34 for three-and-a-half years. The first payment is due on the date of sale and interest is 21% compounded monthly. (a) What is the purchase price? (b) How much will be paid in installments? (c) How much is the cost of financing? (d) If an additional $10.00 per month is added to cover a service contract, what is the value of the entire contract on the date of sale?
A washer-dryer combination can be purchased from a department store by making monthly credit card payments of $46.34 for three-and-a-half years. The first payment is due on the date of sale and interest is 21% compounded monthly. (a) What is the purchase price? (b) How much will be paid in installments? (c) How much is the cost of financing? (d) If an additional $10.00 per month is added to cover a service contract, what is the value of the entire contract on the date of sale?
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 19P
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