i need help with this math problem i have a problem with reading problems i am a stay at home mother that want

Question

this are question out of my 12yr daughter book
a company rented a copier for $600 per mth. five yrs later an accountant calculated that if the comp had purchased the copier and pd a $100 mthly maintenance chrg the comp would have saved $700 what was the purchase price of the copier

Answer 1

60*600 = 60(x+100)+700
36000 = 60x + 6000 + 700
36000 = 60x + 6700
29300 = 60x
Initial Copier price: $29,300
or $488.33 per month for 5 years.

Answer 2

Five years is 5 X 12 = 60 months. So, over these 60 months the company paid 600 X 60 = 36000$.

If the company had purchased the copier and paid that $100 mthly maintenance charge, then, over such period of 60 months, it would have spent the total of P + 60 X 100 = P + 6000 $, where P is the purchase price of the copier. Since this would have saved $700, it follows that 36000 - ( P + 6000) = 700. So, 36000 - P - 6000 = 700 , so that P = 36000 - 6000 - 700 = 29300$

In real life the capital cost would have been considered, but in this problem this wasn't stated.

Answer 3

over 5 years they paid 600 * 12 * 5 = 36000
over 5 years mtce would have been 100*12*5 = 6000
so breakeven price = 30000
but they would have saved 700 so actual price 29300

(note this ignores cost of capital becuase their was no funding cost in the question)

Answer 4

Hope this helps, the purchase price would be $29,300.00
5 yrs x 12 mo = 60 mo
$600 x 60 months = 36,000
36,000 - 700 (savings)=35,300 - 6,000 (monthly 100.00 maintenance fee) = 29,300