A conditional sale contract requires two payments three and six months after the date of the contract.

Question:

A conditional sale contract requires two payments three and six months after the date of the contract. Each payment consists of $1900 principal plus interest at 12.5% on $1900 from the date of the contract. One month into the contract, what price would a finance company pay for the contract if it requires an 18% rate of return on its purchases?