Jennifer bought a brand new treadmill on a credit plan at befit exercise equipment. befit will charge her 15% per year compounded monthly. if her monthly payments will be $150 for 4 years, how much was the original price of the treadmill?
a) $5,390.72
b) $5,389.72
c) $5,388.72
d) $5,392.72
e) $5,385.72

$ 5,389.72

Step-by-step explanation:

This is an annuity question.

Using the formula:

P = E [ ]

E = $150

i = 0.15/12 , since it is compounded monthly

ans P is the original price

substituting into the formula , we have

P = 150 [ ]

P =  150 [ ]

P = 150 [ ]

P = 150 [ 35.93148088]

P = $ 5,389.72

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