Question
When shopping for the latest LCD TV you have been offered the same TV with two different terms of purchase. Option 1:Pay $1,000 now and
When shopping for the latest LCD TV you have been offered the same TV with two different terms of purchase.
Option 1:Pay $1,000 now and 4 annual installments of $2,000 each, with the first payment starting at the end of the 2nd year.
Option 2: Pay $7,000 cash today.
If the stores financing rate is 8% EAR, which option should you choose?
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Microeconomics
Authors: Glenn Hubbard, Anthony O'Brien
7th Edition
0134737504, 978-0134737508
