The furniture store offers you no-money-down on a new set of living room furniture
Further, you may pay for the furniture in three equal annual end-of-the-year payments of $1,000 each with the first payment to be made one year from today. If the discount rate is 6%, what is the present value of the furniture payments?
A) $3,183.60
B) $3,000.00
C) $2,833.39
D) $2,673.01
Answer: D
Explanation: D)
PV = PMT × = $1,000 × = $2,673.01.
MODE = END
INPUT 3 6 ? -1,000 0
KEY N I/Y PV PMT FV
CPT 2,673.01
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