Falco Inc. paid$28,000 as a down payment for a machine. The balance was financed with a loan at3.25% compounded semi-annually and required payments of$7,500 to be made at the end of every six months for 10 years to settle the debt. What was the purchase price of the machine? 

 

Q2-Eric received a loan from his bank at 6.25% compounded monthly so that he could purchase a car. He was required to pay the bank $400 at the end of every month for the next 2 years. What was the cash price of the car?