purchase is financed by five annual payments of $1,000 the first payment due at time of purchase. The effective rate of discount
, d, is 10%. Find the total amount of interest paid.
1 answer:
Answer:
they paid a total of 590.49
Step-by-step explanation:
1000 / 10 = 100 dollar discount he pays 900
900 / 10 = 90 they got a 90 dollar discount 810
810 / 10 = 81 they got an 81 dollar discount 729
729 / 10 = 72.9 they got a 72.9 dollar discount 656.1
656.1 / 10 = 65.61 they got a 65.61 dollar discount 590.49
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