SOLUTION: Kevin purchases a guitar on a payment plan of $17,85 per week for 2.5 years at 13 %/ a compound weekly. What was the selling price of the guitar?

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Question 1132795: Kevin purchases a guitar on a payment plan of $17,85 per week for 2.5 years at 13 %/ a compound weekly. What was the selling price of the guitar?
Found 2 solutions by josmiceli, MathTherapy:
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
I'll take a shot at this
The weekly payments would include
compounded interest on the principle
+A+=+P%2A%28+1+%2B+r%2Fn+%29%5E%28n%2At%29+
+A+=+17.85%2A52%2A2.5+
+A+=+2320.5+
+n%2At+=+52%2A2.5+
+n%2At+=+130+
+r%2Fn+=+.13%2F52+
+r%2Fn+=+.0025+
--------------------------
+2320.5+=+P%2A%28+1+%2B+.0025+%29%5E130+
+2320.5+=+P%2A1.0025%5E130+
+2320.5+=+P%2A1.38347+
+P+=+1677.3+
The selling price was $1,677.30
------------------------------------
check:
+I+=+2320.5+-+1677.3+
+I+=+643.2+
+17.85%2A52+-+643.2+=+1677.3+
OK

Answer by MathTherapy(10552) About Me  (Show Source):
You can put this solution on YOUR website!

Kevin purchases a guitar on a payment plan of $17,85 per week for 2.5 years at 13 %/ a compound weekly. What was the selling price of the guitar?
Based on a 52-week year, Correct Answer: highlight_green%28%22%241%2C979.06+%09%09%22%29