Question 1178748
Let's break down how to find the equivalent cash price of the elliptical trainer.

**1. Calculate the Total Number of Payments:**

* The customer pays $22 per month for 3 years.
* Total payments: 3 years * 12 months/year = 36 payments

**2. Calculate the Monthly Interest Rate:**

* The annual interest rate is 18%.
* The monthly interest rate is 18% / 12 = 1.5% = 0.015.

**3. Use the Present Value of an Ordinary Annuity Formula:**

* The cash price is equivalent to the present value of the installment payments.
* The formula is: PV = PMT * [1 - (1 + r)^-n] / r

Where:

* PV = Present Value (cash price)
* PMT = Monthly payment ($22)
* r = Monthly interest rate (0.015)
* n = Number of payments (36)

**4. Plug in the Values and Calculate:**

* PV = 22 * [1 - (1 + 0.015)^-36] / 0.015
* PV = 22 * [1 - (1.015)^-36] / 0.015
* PV = 22 * [1 - 0.580039] / 0.015
* PV = 22 * [0.419961] / 0.015
* PV = 22 * 27.9974
* PV ≈ $615.94

**Therefore, the cash price for the elliptical trainer is approximately $615.94.**