To purchase equipment for his business, Ted paid $400 down and signed an installment contract that required

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To purchase equipment for his business, Ted paid $400 down and signed an installment contract that required payments of $69.33 at the end of each month for three years. Suppose interest is 10.8% compounded monthly.
(a) What was the cash price of the equipment?
(b) How much was the cost of financing?
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Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0133052312

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

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