Kathy buys a tv set fir 12,500 cash after 60 days. Kathy wishes to pay immediately and the seller needs to compute the cash price on the assumption that money is worth 8% simple interest. What is the cash price today?

Kathy buys a tv set fir 12,500 cash after 60 days. Kathy wishes to pay immediately and the seller needs to compute the cash price on the assumption that money is worth 8% simple interest. What is the cash price today?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter6: Saving And Investing

Section6.1: Why Save?

Problem 6R

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