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A company rented a computer for $800 a month. Five years later the treasurer calculated that if the company had purchased the computer and paid a $100 monthly maintenance charge, the company would have saved $1000. What was the purchase price of the computer?

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abiolataiwo2015

Based on the information given the purchase price of the computer is $41,000.

Purchase price

Purchase price=($800×12month×5)- [(5×12 month×$100)+$1,000]

Purchase price=$48,000-[$6,000+$1,000)

Purchase price=$48,000-$7,000

Purchase price=$41,000

Inconclusion the purchase price of the computer is $41,000.

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