Math Problem Help...2?

Question

Determine the equivalent cash price of an item that can be purchased for $2450 down, and $2575 paid at the end of each year for 3 years if money is worth 5.99% simple interest.

Answer 1

    down payment   =2450                   --------------------------------1)



    2575  payment at the end of 1 year is equal  to

      P (1+ nr/100)  = 2575

      P (1+ 5.99/100)  = 2575

     P = 2429 ----------------------------------------...

2575  payment at the end of 2 year is equal  to

  n = 2

      P (1+ nr/100)  = 2575

      P (1+ 11.98/100)  = 2575

  P  = 2300 ----------------------------------------...

2575  payment at the end of 3 year is equal  to

  n  = 3

      P (1+ nr/100)  = 2575

      P (1+ 17.97/100)  = 2575

   P  = 2183 ----------------------------------------...

sum of 1,2,3 and 4  = 9362