Question: C&D Stereo sold a stereo system on a plan that required no down payment and nothing to pay until January 1 (four months away). Then

C&D Stereo sold a stereo system on a plan that required no down payment and nothing to pay until January 1 (four months away). Then the first of 12 monthly payments of $226.51 must be made. The payments were calculated to provide C&D Stereo with a return on the account receivable of 16.5% compounded monthly. What was the selling price of the stereo system?

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