Question: Carmella purchased a refrigerator under a conditional sale contract that required 30 monthly payments of $60.26 with the first payment due on the purchase date.

Carmella purchased a refrigerator under a conditional sale contract that required 30 monthly payments of $60.26 with the first payment due on the purchase date. The interest rate on the outstanding balance was 18% compounded monthly.
a. What was the purchase price of the refrigerator?
b. How much interest did Carmella pay during the entire contract?

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