Would you please explained why it saved 91, instead of wast 91 ? I mean it has has already purchased it in 1000 and it only worth 909 in the one year.

Please provide detailed explanation, Thank you.

Question : At a recent holiday sale, Bill and Mercedes purchased $1,000 worth of furniture with no money down and no payments for one year! how much money is the deal really worth ? (ASSUMING their after-tax return on investment is 10 percent)

~ The discount factor is 0.909 based on the table

` means the present value of $1,000 is $909 = 1000 * 0.909 = 909

` so Bill and Mercedes saved 91