Question: The local electronics store is offering a promotion, one year: same as cash, meaning that you can buy a TV now and wait a year

The local electronics store is offering a promotion, "one year: same as cash," meaning that you can buy a TV now and wait a year to pay (with no interest). So, if you take home a $1200 TV today, you will owe them $1200 in one year. If your bank is offering 3% interest (1.e, you can deposit money at your bank now at this rate in order to get enough to buy the TV in one year), what is the true cost of the TV to you today? The cost of the TV today is $ 1165.05 (Round to the nearest cent.)

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