An Appliance Store Sells a TV for $1,200 and Gives

question 53

Multiple Choice

An appliance store sells a TV for $1,200 and gives their customers a full three years to pay for the TV. If interest rates are 5 percent, what is the equivalent sales price of the TV when the customer takes the full 3 years to pay for it?

• A) $991.72
• B) $1,036.61
• C) $1,104.14
• D) $1,389.15

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Definitions:

Birthrates

The number of live births per thousand of the population in a specific time period.

Demographic Transition

The massive decline in birth rates that occurs once a developing country achieves higher standards of living because the perceived marginal cost of additional children begins to exceed the perceived marginal benefit.

Death Rates

The number of deaths in a particular population, scaled to the size of that population, per unit of time, typically expressed per 1000 individuals per year.

Productive Resources

Resources that are used in the production of goods and services, including land, labor, and capital.