Problem #4: As part of a promotion, you can buy a new living room set today and make no payments for 3 years. Starting exactly 3 years from today, you will make 5 annual payments of $1500 each. If your discount rate is 6%, how much are you paying for the living room set in today's dollars?

Answer rating: 100% (QA)

To determine the present value of the payments for the living room set we need to dis... View the full answer