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rjkz [21]
2 years ago
12

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

r to pay​ (with no​ in
Business
1 answer:
shtirl [24]2 years ago
3 0

Answer:

$961.54

Explanation:

To calculate the real price of the TV you would have to determine the present value of the TV's price. The future price of the TV is $1,000 and your discount rate is 4% annual (the same as your bank), so the present value of the TV =

present value = future value / (1 + rate) = $1,000 / 1.04 = $961.54

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Sveta_85 [38]

Answer: B. Foreign cars become more expensive.

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