Pt = (Po*r*t)/(1-(1+r)^-t).
r = (18%/12) / 100% = 0.015 = Monthly % rate expressed as a decimal.
t = 12 mo/yr * 2yrs = 24 Months.
Pt=(Po*0.015*24)/(1-(1.015)^-24)= 1420.50.
(Po*0.36)/0.30045608 = 1420.50,
1.198178447*Po = 1420.50,
Po = $1185.55 = Amt. of loan.
C = 900 + 1185.55 = $2085.55 = Cost of
TV.
Nazir saved $900 to buy a plasma tv, he borrowed the rest at an interest rate of 18%/a compounded monthy, 2 years later he paid $ 1420.50 for the principal and the interest, how much did the tv originally cost
1 answer
1 answer