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Sagot :
Answer:
The cash equivalent price of the tv set is P5849.37
Explanation:
The total amount paid monthly is:
The initial down payment of P1800 and 24 payments of P950 (2 years = 24 months)
Then, the price paid with interest is:
[tex]1800+24\cdot950=24600[/tex]
Now, the formula for the monthly compound interest is:
[tex]A=P(1+\frac{r}{12})^{12t}[/tex]Where:
A is the amount after t years
P is the initial amount (what we want to find)
R is the rate of compound in decimal
t is the number of years of compounding
In this case:
• A = 24600 (the total paid if compounded)
,• P is what we want to find
,• r = 0.06 ( to convert percentage to decimal, we divide by 100: 6%/100 = 0.06)
,• t = 24 (2 years)
[tex]\begin{gathered} 24600=P(1+\frac{0.06}{12})^{12\cdot24} \\ . \\ 24600=P\cdot1.005^{288} \\ . \\ P=\frac{24600}{4.2056} \\ . \\ P=5849.373 \end{gathered}[/tex]To the nearest cent, the cash price is 5849.37
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