Chapter 1, 2.17 Smith wishes to buy a TV set and is offered a time payment...

Chapter 1, 2.17

Smith wishes to buy a TV set and is offered a time payment plan whereby he makes 24 monthly payments of 30 each starting now. Smith wants the payments to start in 2 months rather than now. If interest is at a one-month interest rate of 1%, what is the present value now of the saving to Smith if the seller agrees to Smith's terms?

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