A company rented a copier for $600 per month. Five years later, an accountant calculated that if the company had purchased the copier and paid a $100 monthly maintenance charge, the company would have saved $700. What was the purchase price of the copier

Question

Alexis Ayers

Business

16 November, 11:24

A company rented a copier for $600 per month. Five years later, an accountant calculated that if the company had purchased the copier and paid a $100 monthly maintenance charge, the company would have saved $700. What was the purchase price of the copier

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Answers (1)

Know the Answer?

Winston Kaufman · Answer 1

C) $29,300

Explanation:

to determine the answer we need to solve the following equation:

60 installments (C + $100) + $700 = 60 installments x $600

60C + $6,000 + $700 = $36,000

60C + $6,700 = $36,000

60C = $29,300

C = $29,300 / 60 = $488.33 per month during 5 years