Answer:
$417.52
Step-by-step explanation:
Present value of annuity = P * {1-[1/(1+r)^n]/r}
P =Periodic payment i.e. 75
r = rate of interest per period i.e. 16.2% /4 = 4.05% or 0.0405
n =no. of compounding period i.e. 1.50*4 =6
Present value of annuity = Loan amount
Present value of annuity = 75 * {1-[1/(1+0.0405)^6]/0.0405}
Present value of annuity = 75 * {1-[1/(1.0405)^6]/0.0405}
Present value of annuity = 75 * {1-[1/1.268973)/0.0405}
Present value of annuity = 75 * (1-0.78804)/0.0405
Present value of annuity = 75 * (0.21196/0.0405)
Present value of annuity = 75 * 5.23361
Present value of annuity = 392.52
Loan amount = $392.52
Selling price = $392.52 + $25.00
Selling price = $417.52
Thus, the selling price of the skis is $417.52
