Amanda agrees to sell Louise her computer. Louise pays $1,300 for it today. She notices that, theoretically, she could have paid money continuously to Amanda over the next 8 years, with interest being charged at a rate of 11% per year effective, such that each year a fixed amount of $R was paid. Louise also notices that, to Amanda, both methods of payment would have been equivalent in value. What is the nearest dollar? Calculate

 

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To calculate the fixed amount Louise could have paid annually to Amanda over 8 years at an interest ... View the full answer