The local electronics store is offering a promotion "1-year: same as cash," meaning that you can...

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The local electronics store is offering a promotion 1-year: same as cash, meaning that you can buy a TV now, and wait a yea

business accounting

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Answer 1

Answer #1

True cost of the TV worth today

True cost of the TV worth today = Future value / (1 + Interest rate)n

= Future value / (1 + r)n

= $1,250 / (1 + 0.0410)1

= $1,250 / (1.0410)1

= $1,250 / 1.0410

= $1,200.77

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Answer 2

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