A furniture store is offering free credit on purchases over $1,000.You observe that a big-screen television can be purchased for nothing down and $4,000 due in one year.The store next door offers an identical television for $3,650 but does not offer credit terms.Which statement below best describes the "free" credit?
A) The "free" credit costs about 8.75%.
B) The "free" credit costs about 9.13%.
C) The "free" credit costs about 9.59%.
D) The "free" credit effectively costs zero%.
Correct Answer:
Verified
Q24: In calculating the present value of $1,000
Q62: What will be the monthly payment on
Q63: Approximately how much must be saved for
Q65: What is the present value of a
Q66: The present value of the following cash
Q69: The present value of an annuity stream
Q74: An amortizing loan is one in which:
A)
Q77: How much can be accumulated for retirement
Q78: You're ready to make the last of
Q80: If $120,000 is borrowed for a home
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents