6. Barry bought a boat two years ago and at that time paid a down payment of $10000 cash. Today he must make the second and final payment of $7500, which includes the interest charge on the balance owing. Barry financed this purchase at 13.7%/a. Determine the purchase price of the boat?

Question

6.	Barry bought a boat two years ago and at that time paid a down payment of $10000 cash.  Today he must make the second and final payment of $7500, which includes the interest charge on the balance owing.  Barry financed this purchase at 13.7%/a.  Determine the purchase price of the boat?

Scott · Answer

[1 + (2 * .137)] * (p - 10000) = 7500