A Furniture Store Offers No Money Down and No Payment

question 116

Multiple Choice

A furniture store offers no money down and no payment for two years.You decide to purchase a table,which you will take home today,and pay the $1,500 purchase price two years from now.If interest rates are 7%,what is the NPV of this offer?

• A)-$1500
• B)$189.84
• C)$98.13
• D)$0
• E)$217.35

---

Definitions:

Hydrogen Bonds

Weak bonds that form between a hydrogen atom in one molecule and a more electronegative atom, such as oxygen or nitrogen, in another, playing critical roles in the structure of DNA and proteins.

Ionic Bonds

Ionic bonds are chemical bonds formed between two atoms when one atom transfers electrons to another, resulting in oppositely charged ions that attract each other.

Covalent Bonds

Covalent bonds are chemical bonds where atoms share pairs of electrons, enabling each atom to attain a stable electron configuration.

Outermost Shell

In chemistry, refers to the valence shell, which is the outermost shell of electrons in an atom and determines an element's chemical properties.