TV’s R Yours is advertising a deal, in which you buy a flat screen TV/entertainment package for $1,205 (including tax) with two years before you need to pay (no interest is incurred if you pay by the end of two years). How much would you need to deposit at the end of each month in a savings account earning 1.2% APR, compounded monthly, to be able to pay the $1,820.75 bill in one year?
TV’s R Yours is advertising a deal, in which you buy a flat screen TV/entertainment package for $1,205 (including tax) with two years before you need to pay (no interest is incurred if you pay by the end of two years). How much would you need to deposit at the end of each month in a savings account earning 1.2% APR, compounded monthly, to be able to pay the $1,820.75 bill in one year?
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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TV’s R Yours is advertising a deal, in which you buy a flat screen TV/entertainment package for $1,205 (including tax) with two years before you need to pay (no interest is incurred if you pay by the end of two years). How much would you need to deposit at the end of each month in a savings account earning 1.2% APR, compounded monthly, to be able to pay the $1,820.75 bill in one year?
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