At the top of the ad, in bold letters, is the following: "No interest & no payments* for 12 months on all 3-D TVs." On right side of the ad is an image of a 3-D TV with the price "$3,399," and the caption "Optimax Plus 1080p true HD resolution for better picture quality. 120Hz refresh rate, dual core processor, content sharing and screen mirroring. Smart TV features let you interact and stream content from the web. Supports apps." At the bottom of the ad, in a small font, is the following: "* Offer is subject to credit approval. No finance charges assessed and no monthly payment required on the promotional purchase if you pay this amount in full by the payment due date as shown on the twelfth (12th) billing statement after purchase date. If you do not, finance charges will be assess on the promotional purchase amount from the purchase date and minimum monthly payment will be required on balance of amount. Standard account terms apply to non-promotional balance and, after the promotion ends, to promotional purchases. APR = 23.73%. APR of 25.65% applies if payment is more than 30 days late. Sales tax will be paid at time of purchase."
At the top of the ad, in bold letters, is the following: "No interest & no payments* for 12 months on all 3-D TVs." On right side of the ad is an image of a 3-D TV with the price "$3,399," and the caption "Optimax Plus 1080p true HD resolution for better picture quality. 120Hz refresh rate, dual core processor, content sharing and screen mirroring. Smart TV features let you interact and stream content from the web. Supports apps." At the bottom of the ad, in a small font, is the following: "* Offer is subject to credit approval. No finance charges assessed and no monthly payment required on the promotional purchase if you pay this amount in full by the payment due date as shown on the twelfth (12th) billing statement after purchase date. If you do not, finance charges will be assess on the promotional purchase amount from the purchase date and minimum monthly payment will be required on balance of amount. Standard account terms apply to non-promotional balance and, after the promotion ends, to promotional purchases. APR = 23.73%. APR of 25.65% applies if payment is more than 30 days late. Sales tax will be paid at time of purchase."
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
- At the top of the ad, in bold letters, is the following: "No interest & no payments* for 12 months on all 3-D TVs."
- On right side of the ad is an image of a 3-D TV with the price "$3,399," and the caption "Optimax Plus 1080p true HD resolution for better picture quality. 120Hz refresh rate, dual core processor, content sharing and screen mirroring. Smart TV features let you interact and stream content from the web. Supports apps."
- At the bottom of the ad, in a small font, is the following: "* Offer is subject to credit approval. No finance charges assessed and no monthly payment required on the promotional purchase if you pay this amount in full by the payment due date as shown on the twelfth (12th) billing statement after purchase date. If you do not, finance charges will be assess on the promotional purchase amount from the purchase date and minimum monthly payment will be required on balance of amount. Standard account terms apply to non-promotional balance and, after the promotion ends, to promotional purchases. APR = 23.73%. APR of 25.65% applies if payment is more than 30 days late. Sales tax will be paid at time of purchase."
(a)
If you purchased the TV on October 23 of this year and the billing date of the installment loan is the 15th of each month, when would your first payment be due?
September of this yearSeptember of next year November of next yearOctober of next yearNovember of this year
(b)
What is the required amount of that payment (in $)?
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