Store ABC is offering free credit on purchases of over $$1,000.$ You observe that a television can be

purchased for nothing down and $$4,000$ due in one year.

Store XYZ offers an identical television for $$3,650$ but does not offer free credit.

Which statement below best describes the real cost of "free" credit?

Hint: Find the implied interest rate $($like CAGR$)$ assuming $PV=$ price at Store $xYZ$ and $FV=$ price at

Store ABC.

The "free" credit costs about $8\mathrm{.}75\%$

The "free" credit costs about $9\mathrm{.}13\%.$

The "free" credit costs about $9\mathrm{.}59\%.$

The "free" credit effectively costs zero percent.