Answer: Amount of purchase would be $393.70.
Step-by-step explanation:
One person made a purchase that was financed in three monthly installments and equal to $ 350.00, the financing was made at the compound interest rate of 48% a.a. Determine the amount of the purchase.
Since we have given that
Principal = $350.00
Rate of compounded monthly = 48%
Number of months = 3
So, the amount of purchase would be
[tex]Amount=350(1+\dfrac{0.48}{12})^3\\\\Amount=350(1+0.04)^3\\\\Amount=350(1.04)^3\\\\Amount=\$393.70[/tex]
Hence, Amount of purchase would be $393.70.
