Answer to Question #292997 in Algebra for Elle

Question

A buyer and seller agreed following about the price of an excavator: The buyer pays

• 10869 € after 4 months and
• 74244 € after 8 months

Calculate the cash price of an excavator using annual discount interest rate of 7.3 %.

Answer 1

SOLUTION:

For full year, money paid:

= 10869+74244

=85113

Annual Discount = 7.3%

Money paid = 100%-7.3%

=92.7%

=(92.7÷100) × 85113

= 78899.75

Therefore, the cash price = 78899.75