Q20 A local furniture store is advertising a deal in which you buy a $4,300 living room set with three years before you need to make any payments (no interest cost is incurred). How much money would you have to deposit now in a savings account earning 5 percent APR, compounded monthly, to pay the $4,300 bill in three years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PRESENT VALUE? How much would you have to deposit in the savings account each month 5 percent APR to be able to pay the bill? (Do not round intermediate calculations and round your final answer to 2 decimal places.) ANNUITY PAYMENT?
Q20 A local furniture store is advertising a deal in which you buy a $4,300 living room set with three years before you need to make any payments (no interest cost is incurred). How much money would you have to deposit now in a savings account earning 5 percent APR, compounded monthly, to pay the $4,300 bill in three years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PRESENT VALUE? How much would you have to deposit in the savings account each month 5 percent APR to be able to pay the bill? (Do not round intermediate calculations and round your final answer to 2 decimal places.) ANNUITY PAYMENT?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA3: Time Value Of Money
Section: Chapter Questions
Problem 7CE
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Q20
A local furniture store is advertising a deal in which you buy a $4,300 living room set with three years before you need to make any payments (no interest cost is incurred).
How much money would you have to deposit now in a savings account earning 5 percent APR, compounded monthly, to pay the $4,300 bill in three years? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
PRESENT VALUE?
How much would you have to deposit in the savings account each month 5 percent APR to be able to pay the bill? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
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