The promotions manager of Waterbed World is interested in running a “36 months, no interest sale.” He wants to offer customers the opportunity to buy waterbeds and to finance the purchase by merely dividing the price of the waterbed by 36 to determine the customer’s monthly payment. However, he realizes that the sale price must somehow include the 12 percent interest usually charged to finance credit purchases. He has asked you to show him how to determine the sale price of a waterbed that normally sells for $ 1,000.
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