Question

Mark bought an electric appliance through an installment plan in which he paid RM 600 down payment. he had to make 24 monthly payments of RM 232 each to settle the unpaid balance. if the dealer charged 8% interest rate per annum on the original balance. find the cash price of the item.
HELP ME PLEASE!! ​

Answer 1

Answer:

The initial price of the item was RM 5277.12

Step-by-step explanation:

600+24×232 was the price paid by Mark because he opted for a monthly fee payment.

If he would have had the money when he first decided to aquire the electric appliance then he would have had to pay 16% less of 24×232=5568 (-890.88), an initial balance of 4677.12