a computer cost $40,000 to purchase.Renting the same computer requires making $5000 , non-refundable deposits and monthly payments of $2500.After how many months will the cost to rent the computer equal the cost to purchase it?
40,000 = 5000 + 2500m
Solve for m.
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To determine after how many months the cost to rent the computer will equal the cost to purchase it, we need to calculate the total cost of renting the computer over time.
Let's break down the cost of renting the computer:
Non-refundable deposits: $5000
Monthly payments: $2500
The monthly payments will be made over a certain number of months until the rental cost equals the purchase price of $40,000.
To find this, we can set up an equation:
$5000 + ($2500 x number of months) = $40,000
Now, let's solve for the number of months:
$2500 x number of months = $40,000 - $5000
$2500 x number of months = $35,000
Dividing both sides of the equation by $2500:
number of months = $35,000 / $2500
number of months = 14
Therefore, after 14 months, the cost to rent the computer will equal the cost to purchase it.