If the effective annual interest rate is 1268 with interest


Question - An electronics store is currently offering a special deal on the purchase of a home theatre system. If you make the purchase today, you don't need to make your first payment for 18 months. You then have to make 15 monthly payments of $200 each, with the payments starting 19 months from today. If the effective annual interest rate is 12.68% with interest compounded monthly, what is the equivalent cash price today for the system?

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Accounting Basics: If the effective annual interest rate is 1268 with interest
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