A Furniture Store Is Offering Free Credit on Purchases Over

question 112

Multiple Choice

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%.

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Definitions:

Fibroids

benign tumors of the uterus composed of muscle and fibrous tissue, which can cause heavy menstrual bleeding and pain.

Benign Uterine

typically refers to non-cancerous conditions affecting the uterus, such as fibroids.

Cystocele

A condition in which the wall between a woman's bladder and her vagina weakens and allows the bladder to droop into the vagina.

Bladder

A hollow organ in the lower abdomen that stores urine from the kidneys before it is excreted through urination.