The Furniture Store Offers You No-Money-Down on a New Set

Multiple Choice

The furniture store offers you no-money-down on a new set of living room furniture.Further,you may pay for the furniture in three equal annual end-of-the-year payments of $1,000 each with the first payment to be made one year from today.If the discount rate is 6%,what is the present value of the furniture payments?

A) $3,183.60
B) $3,000.00
C) $2,833.39
D) $2,673.01