Leon's has a "Don't Pay For One Year" event on right now at the store,so you purchase an Italian,hand-stitched leather sofa.You will pay $1,267.99 for the sofa in one year.You have a savings account that pays 3% annual interest.How much must you deposit in your account today in order to have enough money to pay for the sofa in one year?
A) $1,231.06
B) $1,267.99
C) $1,195.20
D) $1,230.56
E) $1,337.21

Question

Quizplus · Accepted Answer

PV = 11ea7fdb_fc2c_c869_a768_1d5abd615727_TB2902_00 PV = 11ea7fdb_fc2c_c86a_a768_a9f176486e6e_TB2902_00 = $1,231.06
Using a financial calculator:
N = 1, I/Y = 3, PMT = 0, FV = -1,267.99, cpt PV = $1,231.06

Leon's Has a "Don't Pay for One Year" Event on Right