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

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

posted by Kal Jay

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