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The local electronics store is offering a promotion 1-year: same as cash, meaning that you can buy a TV now, and wait a year to pay (with no interest). So, if you take home a S1,450 TV today, you will owe them $1,450 in one year if your bank is offering 3.7% interest, what is the true cost of the TV to you today? The true cost of the TV to you today is S(Round to the nearest cent.)

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Answer #1

you will pay $1,450 one year from now.

Interest rate = 3.7%

cost of TV today is = ($1,450)/(1+0.037)

= ($1,450 / 1.037)

= $1,398.26

So, the true cost of the TV to you today is $1,398.26

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