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

The local electronics store is offering a promotion​ "1-year: same as​ cash," meaning that you can buy a TV​ now, and wait a year to pay​ (with no​ interest). So, if you take home a $ 1,200 TV​ today, you will owe them $1,200 in one year. If your bank is offering 4.1 % ​interest, what is the true cost of the TV to you​ today? The true cost of the TV to you today is ? ​(Round to the nearest​ cent.)

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Answer #1

Cost of TV today=$1200*Present value of discounting factor(rate%,time period)

=$1200/1.041

which is equal to

=$1152.74(Approx).

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