Milica J.

asked • 10/26/19

Please help me understand this question (question in description)

A DVD player can be purchased for no money down and 24 equal monthly payments of $18. The interest charged is 11.5% compounded monthly. Determine the equivalent cash price of the DVD player.


So the question is an example question, and it was already solved.


The example did it as PV=18[1-(1+0.115/12)^-24]/(0.115/12) and the PV is $384.28


My question is, how did they solve it? I tried calculating it and I got a different answer.

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