Posted by Annie on Wednesday, January 11, 2012 at 5:17pm.
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

math  Henry, Thursday, January 12, 2012 at 8:28pm
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.
Answer This Question
Related Questions
 mathfinance  Colin borrowed some money at 7.16%?a compounded quarterly. three ...
 Compound Interest  Payments of $1,800 and $2,400 were made on a $10,000 ...
 math  Ever wonder how much a house “actually” costs? Consider Alex and Sabrina ...
 math  An amount of $27,000 is borrowed for 6 years at 8.25% interest, ...
 Math  Suppose you borrowed $25,000 for a car at an APR of 8%, which you are ...
 math algebra 2  An amount of $20,000 is borrowed for 13 years at 5% interest, ...
 Math  You borrow $2,000 for a period of 4 years. You are charged simple ...
 Financial Math  An investment of $2500 accumulates at 6% p.a compounded semi ...
 Math  Interest is a concept familiar to most people: every credit card in ...
 math  calculate the present value (principal) and compound interest on $900 (...
More Related Questions