Annual interest rate, i = 18% = 0.18
Period of payments, n = 2 years
Monthly payments, E = $150
The applicable formula is;
P = E [1-(1+i/12)^(-12n)]/[i/12]
Where;
P = Original price of the treadmill
Substituting;
P = 150[1-(1+0.18/12)^(-12*2)]/[0.18/12] = 3004.56
Therefore, the original price of the treadmill was $3,004.56
