During its January Sale, Furniture City is offering terms of 25% down with no further payments and no interest charges for six months, when the

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During its January Sale, Furniture City is offering terms of 25% down with no further payments and no interest charges for six months, when the balance is due. Furniture City sells the conditional sale contracts from these credit sales to a finance company. The finance company discounts the contracts to yield 18% compounded monthly. What cash amount should Furniture City accept on a $1595 item in order to end up in the same financial position as if the item had been sold under the terms of the January Sale?

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