CHAPTER 2
x(1.10)4 + x(1.10)3 + x(1.10)2 + x(1.10)1 + x = $20,000 x(1.464 + 1.331 + 1.210 + 1.10 + 1) = $20,000 x(6.105) = $20,000 x = $ 3,276 22. The fact that Kangaroo Autos is offering “free credit” tells us what the cash payments are; it does not change the fact that money has time value. ................
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