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You are offered a computer for monthly payments of $125 for 24 months. If you are...

You are offered a computer for monthly payments of $125 for 24 months. If you are paying 3% APR monthly, what is the price of the computer? A.$1,597 B.$3,000 C.$1,908 D.$2,034 E.$2,908
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Answer #1

- You are offered a computer for monthly payments of $125 for 24 months

Calculating the Price of Computer using PV of annuity formula:-

Where, C= Monthly Payments = $125

r = Periodic Interest rate = 3%/12 = 0.25%

n= no of periods = 24 months

Present Value = $2908

Price of Computer = $2908

Option E

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