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Samantha Enters a Rent-To-Own Agreement for Living Room Furniture B)

Question 17

Multiple Choice

Samantha enters a rent-to-own agreement for living room furniture. She will pay $60 per month
for one year. Which of the following shows the timeline for her payments if the first payment is one
month from now?


A)  Date  (Months)  0123456789101112 Cash $60$12$18$24$30$36$48$54$60$66$72$78$84 Flows 000000000000\begin{array} { | l | l | l | l | l | l | l | l | l | l | l | l | l | l | } \hline \begin{array} { l } \text { Date } \\\text { (Months) }\end{array} & 0 & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 & 10 & 11 & 12 \\\hline \text { Cash } & - \$ 60 & - \$ 12 & - \$ 18 & - \$ 24 & - \$ 30 & - \$ 36 & - \$ 48 & - \$ 54 & - \$ 60 & - \$ 66 & - \$ 72 & - \$ 78 & - \$ 84 \\\text { Flows } & & 0 & 0 & 0 & 0 & 0 & 0 & 0 & 0 & 0 & 0 & 0 & 0 \\\hline\end{array}
B)  Date  (Months)  0123456789101112 Cash  Flows $60$60$60$60$60$60$60$60$60$60$60$60$60\begin{array} { | l | l | l | l | l | l | l | l | l | l | l | l | l | l | } \hline \begin{array} { l } \text { Date } \\\text { (Months) }\end{array} & 0 & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 & 10 & 11 & 12 \\\hline \begin{array} { l } \text { Cash } \\\text { Flows }\end{array} & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 \\\hline\end{array}
C)  Date  (Months)  123456789101112 Cash  Flows $60$60$60$60$60$60$60$60$60$60$60$60\begin{array} { | l | l | l | l | l | l | l | l | l | l | l | l | l | } \hline \begin{array} { l } \text { Date } \\\text { (Months) }\end{array} & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 & 10 & 11 & 12 \\\hline \begin{array} { l } \text { Cash } \\\text { Flows }\end{array} & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 \\\hline\end{array}
D)  Date  (Months)  0123456789101112 Cash  Flows 0$60$60$60$60$60$60$60$60$60$60$60$60\begin{array} { | l | l | l | l | l | l | l | l | l | l | l | l | l | l | } \hline \begin{array} { l } \text { Date } \\\text { (Months) }\end{array} & 0 & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 & 10 & 11 & 12 \\\hline \begin{array} { l } \text { Cash } \\\text { Flows }\end{array} & 0 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 & - \$ 60 \\\hline\end{array}

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