For its "Tenth Anniversary Salebration," Pioneer Furniture is offering terms of 10% down, no interest, and no payments for six months. The balance must then be paid in six equal payments, with the first payment due six months after the purchase date. The conditional sale contract calculates the monthly payments to include interest at the rate of 15% compounded monthly after the end of the interest free period. Immediately after the sale of the furniture, Pioneer sells the contract to Afco Finance at a discount to yield Afco 18% compounded semiannually from the date of the sale. What cash payment will Pioneer receive from Afco on a piece of furniture sold for $2000?

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The Answer of For its "Tenth Anniversary Salebration," Pioneer Furniture is offering terms of 10% down, no interest, and no payments for six months. The balance must then be paid in six equal payments, with the first payment due six months after the purchase date. The conditional sale contract calculates the monthly payments to include interest at the rate of 15% compounded monthly after the end of the interest free period. Immediately after the sale of the furniture, Pioneer sells the contract to Afco Finance at a discount to yield Afco 18% compounded semiannually from the date of the sale. What cash payment will Pioneer receive from Afco on a piece of furniture sold for $2000?

For Its "Tenth Anniversary Salebration," Pioneer Furniture Is Offering Terms