Future shop is offering a special deal on TVs. If you buy today, you don't need...
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Future shop is offering a special deal on TVs. If you buy today, you don't need to make any payments for one year. Starting one year from today, you must make 12 monthly payments of $200. (So the first payment is one year from today, and the second one, 1 month later.) If interest rates are i(12) = 12%, what is the purchase price of the TV? Future shop is offering a special deal on TVs. If you buy today, you don't need to make any payments for one year. Starting one year from today, you must make 12 monthly payments of $200. (So the first payment is one year from today, and the second one, 1 month later.) If interest rates are i(12) = 12%, what is the purchase price of the TV?
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Answer rating: 100% (QA)
SOLUTION To calculate the purchase price of the TV we need to find the present value of the 12 month... View the full answer
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Posted Date:
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