Question

Samantha enters a​ rent-to-own agreement for living room furniture. She will pay $ 70 per month for one year. Which of the following shows the timeline for her payments if the first payment is one month from​ now? A. Date ​(Months) 1 2 3 4 5 6 7 8 9 10 11 12 Cash Flows minus$ 70 minus$ 70 minus$ 70 minus$ 70 minus$ 70 minus$ 70 minus$ 70 minus$ 70 minus$ 70 minus$ 70 minus$ 70 minus$ 70 B. Date ​(Mo​nths) 0 1 2 3 4 5 6 7 8 9 10 11 12 Cash Flows minus$ 70 minus$ 70 minus$ 70 minus$ 70 minus$ 70 minus$ 70 minus$ 70 minus$ 70 minus$ 70 minus$ 70 minus$ 70 minus$ 70 minus$ 70 C. Date ​(Months) 0 1 2 3 4 5 6 7 8 9 10 11 12 Cash Flows negative $ 70 0 0 0 0 0 0 0 0 0 0 0 negative $ 70 D. Date ​(Months) 0 1 2 3 4 5 6 7 8 9 10 11 12 Cash Flows 0 negative $ 70 negative $ 70 negative $ 70 negative $ 70 negative $ 70 negative $ 70 negative $ 70 negative $ 70 negative $ 70 negative $ 70 negative $ 70 negative $ 70

Answer 1

Answer: Please see answer below

Explanation: Since Samanta will pay $70 for a year, the following timeline shows her payment .

0 Month= $0 it is stated that her first payment is one month from now

1 Month = -$70

2 Month = -$70

3 Month = -$70

4 Month = -$70

5 Month = -$70

6 Month = -$70

7 Month = -$70

8 Month = -$70

9 Month = -$70

10 Month = -$70

11 Month = -$70

12 Month = -$70