Osgood Appliance Centre is advertising refrigerators for six monthly payments of $199, including a payment on the date of purchase. What cash price should Osgood accept if it would otherwise sell the conditional sale agreement to a finance company to yield 18% compounded monthly? A)$1150.75 B) 1242.50 C )1352.02 D) 1298.78 E) 1045.87

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Osgood Appliance Centre is advertising

refrigerators for six monthly payments of $199,

including a payment on the date of purchase.

What cash price should Osgood accept if it would otherwise sell the conditional sale agreement to a finance company to yield 18% compounded monthly? A)$1150.75 B) 1242.50 C

)1352.02 D) 1298.78 E) 1045.87

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