Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a local furniture store is advertising a deal in w

A local furniture store is advertising a deal in which you buy a $4,700 living room...

70.2K

Verified Solution

Question

Finance

A local furniture store is advertising a deal in which you buy a$4,700 living room set with three years before you need to make anypayments (no interest cost is incurred).

How much money would you have to deposit now in a savingsaccount earning 6 percent APR, compounded monthly, to pay the$4,700 bill in three years?

How much would you have to deposit in the savings account eachmonth to be able to pay the bill?

Answer & Explanation Solved by verified expert
4.4 Ratings (565 Votes)
Payment to be made after 3 years 4700 APR 6Monthly rate APR No of months in a year 6 12 050Period 3 years 3 x 12 months 36    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

A local furniture store is advertising a deal in which you buy a$4,700 living room set with three years before you need to make anypayments (no interest cost is incurred).How much money would you have to deposit now in a savingsaccount earning 6 percent APR, compounded monthly, to pay the$4,700 bill in three years?How much would you have to deposit in the savings account eachmonth to be able to pay the bill?

Other questions asked by students

Q

In a survey of 28 teenagers who were asked how many hours per week they spend...

Statistics
Q

Flynn Industries has three activity cost pools and two products. It expects to produce 2,560 units...

Accounting
Q

Complete the following worksheet for Appliance Repair for the year ended 30 June 2020. Additional information...

Accounting
Q

Which of the following describes the role of acetyl CoA in cellular respiration A B...

Biology
Q

Which two taxonomic categories are used for establishing the binomen O family O genus O...

Biology
Q

In an A C circuit a resistance R 400 and an inductance L are connected...

Physics
Q

28 m 28 m 22 1 m 3

Geometry
Q

Dalton deposited 7 000 in an account earning 10 interest compounded annually To the nearest...

Geometry
Q

Consider a 400mm long beam with a pinned left and simple roller right supports at...

Basic Math
Q

Evaluate log? /?(3/5) using the change of base formula. Round to the nearest hundredth as...

Algebra
Q

Advanced Products Corporation has supplied the following data from its activity-based costing system: ...

Accounting
Q

The company is considering a purchase of equipment that would reduce its direct labor costs...

Accounting