Question

Mike’s Sporting Goods sells elliptical trainers under two payment plans: cash and installment. Under the installment plan, the customer pays $90/month over 5 years with interest changed on the balance at a rate of 19%/year compounded monthly. Find the cash price for an elliptical trainer if it is equivalent to the price paid by a customer using the installment plan. Round your answers to two decimal places.
​

a. $3,492.47
b. $3,464.42
c. $3,469.47
d. $3,502.80
e. $3,452.28

Please explain thank you.

Answer 1

Mike’s Sporting Goods sells elliptical trainers under two payment plans: cash and installment. Under the installment plan, the customer pays $90/month over 5 years with interest changed on the balance at a rate of 19%/year compounded monthly. Find the cash price for an elliptical trainer if it is equivalent to the price paid by a customer using the installment plan. Round your answers to two decimal places.
​

a. $3,492.47
b. $3,464.42
c. $3,469.47
d. $3,502.80
e. $3,452.28

Please explain thank you.