C&D stereo sold a stereo system on a plan that required no down payment and nothing to pay until January 1 (four months away). then the first of 12 monthly payments of $226.51 must be made. The payments were calculated to provide C&D Stereo with a return on the account receivable of 16.5% compounded monthly. what was the selling price of the stereo system?

C&D stereo sold a stereo system on a plan that required no down payment and nothing to pay until January 1 (four months away). then the first of 12 monthly payments of $226.51 must be made. The payments were calculated to provide C&D Stereo with a return on the account receivable of 16.5% compounded monthly. what was the selling price of the stereo system?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 4MC

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