A Furniture Store Is Offering Free Credit on Purchases of Over

question 47

Multiple Choice

A furniture store is offering free credit on purchases of 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 percent
• B)The "free" credit costs about 9.13 percent
• C)The "free" credit costs about 9.59 percent
• D)The "free" credit effectively costs zero percent

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Techniques or methods applied to address and overcome obstacles or challenges in order to reach a desired goal or solution.

Subgoals

Intermediate objectives or steps devised to make the process of achieving a main goal more manageable and attainable.

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Comparisons made between two things for the purpose of explanation or clarification.

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Theoretical frameworks used to understand how humans categorize information, form concepts, and apply these concepts to everyday life.