Question

A company rented a copier for $600 per month. Five years later, an accountant calculated that if the company had purchased the copier and paid a $100 monthly maintenance charge, the company would have saved $700. What was the purchase price of the copier

Answer 1

Answer:

C) $29,300

Explanation:

to determine the answer we need to solve the following equation:

60 installments (C + $100) + $700 = 60 installments x $600  

60C + $6,000 + $700 = $36,000  

60C + $6,700 = $36,000

60C = $29,300

C = $29,300 / 60 = $488.33 per month during 5 years