KATHY BUYS A TELEVISION SET FROM A MERCHANT WHO ASKS P1,500.00 AT THE END OF 60 DAYS(CASH IN 60 DAYS). KATHY WISHES TO PAY IMMEDIATELY AND THE MERCHANT OFFERS TO COMPUTETHE CASH PRICE ON THE ASSUMPTION THAT MONEY IS WORTH 8% SIMPLE INTEREST. WHAT IS THECASH PRICE TODAY?O a. P1,480.26O b. P1,408.26O c. P1,048.26O d. P1,840.26

Given that: F = P1500, d = 60 days, i = 8% Calculate: P= cash price

KATHY BUYS A TELEVISION SET FROM A MERCHANT WHO ASKS P1,500.00 AT THE END OF 60 DAYS (CASH IN 60 DAYS). KATHY WISHES TO PAY IMMEDIATELY AND THE MERCHANT OFFERS TO COMPU THE CASH PRICE ON THE ASSUMPTION THAT MONEY IS WORTH 8% SIMPLE INTEREST. WHAT IS THI CASH PRICE TODAY? a. P1,480.26 O b. P1,408.26 O c. P1,048.26 O d. P1,840.26

KATHY BUYS A TELEVISION SET FROM A MERCHANT WHO ASKS P1,500.00 AT THE END OF 60 DAYS (CASH IN 60 DAYS). KATHY WISHES TO PAY IMMEDIATELY AND THE MERCHANT OFFERS TO COMPU THE CASH PRICE ON THE ASSUMPTION THAT MONEY IS WORTH 8% SIMPLE INTEREST. WHAT IS THI CASH PRICE TODAY? a. P1,480.26 O b. P1,408.26 O c. P1,048.26 O d. P1,840.26

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter27: Investment, The Capital Market, And The Wealth Of Nations

Section: Chapter Questions

Problem 14CQ

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