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Harrison sees an advertisement for an eight-piece patio furniture set. According to the ad, he will not have to put any money down today; instead,
Harrison sees an advertisement for an eight-piece patio furniture set. According to the ad, he will not have to put any money down today; instead, will make six easy installment payments of $999 at the end of every year, for 6 years. The prevailing yield is 11% compounded annually. What is the initial book value of the patio furniture set? You may round your answer to the nearest dollar.
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Question 6 options:
| $4,226 |
| $4,666 |
| $5,126 |
| $5,994 |
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