document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1032183>Question 1032183</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A DVD player can be purchased for $1500 down and $500 a month for 18 months. What is the equivalent price if the DVD player is purchased for cash? Assume that the interest rate on credit is 15% compounded monthly.  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #647033 by </B><A HREF=/tutors/aboutme.mpl?userid=robertb><B>robertb(5830)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=robertb><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=robertb><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=647033\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Equivalent price  = down payment + present value of all monthly payments.\r<BR>\n" );
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document.write( "Now present value of all monthly payments = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P+=+R%28%281-%281%2Br%2Fn%29%5E%28-nt%29%29++++%2F%28r%2Fn%29%29 ALIGN=MIDDLE  ALT=\"P+=+R%28%281-%281%2Br%2Fn%29%5E%28-nt%29%29++++%2F%28r%2Fn%29%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >.\r<BR>\n" );
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document.write( "Here, n = 12, t = 1.5, r = 0.15, R = 500.\r<BR>\n" );
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document.write( "==> <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P+=+500%28%281-%281%2B0.15%2F12%29%5E%28-18%29%29+%2F%280.15%2F12%29%29+=+8014.77 ALIGN=MIDDLE  ALT=\"P+=+500%28%281-%281%2B0.15%2F12%29%5E%28-18%29%29+%2F%280.15%2F12%29%29+=+8014.77\"   DISABLED_style= \"max-width:90%; height:auto;\" >.\r<BR>\n" );
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document.write( "==> Equivalent price  = 1500 +  8014.77 = $9,514.77. </SPAN>\n" );
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