You are buying a sofa. You will pay $200 today and make three consecutive annual payments...

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You are buying a sofa. You will pay $200 today and make three consecutive annual payments of $300 in the future. The real rat

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Answer 1

Answer #1

Actual Price = 200 + 300/(1.17) + 300/(1.17)² + 300/(1.17)³

Actual Price = $862.88

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Answer 2

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You are buying a sofa. You will pay $200 today and make three consecutive annual payments...

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