A Local Furniture Store Is Advertising a Deal in Which

Multiple Choice

A local furniture store is advertising a deal in which you buy a $3,500 living room set with three years before you need to make payments (no interest is incurred) . How much money would you have to deposit now in a savings account earning 3.5 percent APR, compounded monthly, to pay the $3,500 bill in three years?

A) $2,981.17
B) $3,151.62
C) $3,200.61
D) $3,886.89