Leons Has a Promotion on a Refrigerator Selling for $1750

question 178

Multiple Choice

Leons has a promotion on a refrigerator selling for $1750. Buyers will pay "no money down and no payments for six months." The first of 12 equal monthly payments is required 6 months from the purchase date. What should the monthly payments be if Leons is to earn 15% compounded monthly on its account receivable during both the deferred period and repayment period?

• A) $1862.14
• B) $1885.42
• C) $170.17
• D) $182.24
• E) $168.07

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Definitions:

Cyclohexane

A cycloalkane with the molecular formula C6H12, it is a colourless, volatile liquid with a distinct odor, primarily used as a nonpolar solvent.

Molecular Formula

A notation that uses chemical symbols and numbers to represent the types and quantities of atoms in a molecule.

Cyclooctane

Cyclooctane is a cyclic hydrocarbon with the molecular formula C8H16, featuring eight carbon atoms connected in a ring.

Organic Solvent

A solvent containing carbon that is used to dissolve other substances; it is an essential part of many chemical processes because it can dissolve many organic compounds.