An Engineering Student Intends To Purchase A New Computer He Plans To Pay 300 Do

 An engineering student intends to purchase a new computer. He plans to pay $300 down and finance the remainder over a 12 month period. The maximum amount that he can repay each month is $100.

a. What is the most expensive computer he can purchase, assuming an interest rate of 2% per month (compounded monthly)?

b. Draw the Cash Flow Diagram for this problem.

Posted in Uncategorized