An electronics retailer is offering a deferred payment plan. A customer can buy a laptop today for no money down, followed by 12 monthly payments of $145, with the first payment due in 1 year from date of purchase. If the retailer is building in a rate of return of 12% compounded monthly, what is the purchase price of the laptop that was financed?

An electronics retailer is offering a deferred payment plan. A customer can buy a laptop today for no money down, followed by 12 monthly payments of $145, with the first payment due in 1 year from date of purchase. If the retailer is building in a rate of return of 12% compounded monthly, what is the purchase price of the laptop that was financed?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 32P

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