Question
You are the financial manager at Best Buy where a certain TV set is normally sold for $2,500 and the full purchase price is financed
You are the financial manager at Best Buy where a certain TV set is normally sold for $2,500 and the full purchase price is financed for 30 monthly payments at 24% per year compounded monthly, with the payments made at the end of each month. During Christmas Best Buy is planning to run a zero-interest financing sale during which you will offer the customers to finance the TV set over 30 months at 0% interest. How much do you need to charge for the TV set during the Christmas sale in order to earn your usual combined return on the sale and the financing
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