The Furniture Store Offers You No-Money-Down on a New Set

question 7

Multiple Choice

The furniture store offers you no-money-down on a new set of living room furniture.Further,you may pay for the furniture in three equal annual end-of-the-year payments of $750 each with the first payment to be made one year from today.If the discount rate is 5%,what is the present value of the furniture payments?

• A)$2,042.44
• B)$2,214.27
• C)$2,333.39
• D)$2,673.01

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