Suppose, that Bob’s Mattress Warehouse has a sale in September 2014 where “customers
Question # 00098119
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Updated on: 08/28/2015 11:57 PM Due on: 09/27/2015
Suppose, that Bob’s Mattress Warehouse has a sale in September 2014 where “customers make no
payments until September 2016”. Suppose that Bob’s sells a mattress for $950 and the discount rate
(interest rate) is 8 percent per year. At the time of purchase, how much revenue would Bob report ?
A. $ 1108
B. $ 814
C. $ 76
D. $ 1026
E. $ 880
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Solution: Suppose, that Bob’s Mattress Warehouse has a sale in September 2014 where “customers