A Furniture Store Is Offering Free Credit on Purchases of Over

Multiple Choice

A furniture store is offering free credit on purchases of over $1,000.You observe that a big-screen television can be purchased for nothing down and $4,000 due in one year.The store next door offers an identical television for $3,650 but does not offer credit terms.Which statement below best describes the "free" credit?

A) The "free" credit costs about 8.75 percent
B) The "free" credit costs about 9.13 percent
C) The "free" credit costs about 9.59 percent
D) The "free" credit effectively costs zero percent