Answer:
The correct option is B,demand-based
Explanation:
Demand-based is the pricing strategy of hiking prices at busy at peak periods and charging modest prices at off-peak periods.
The reason for charging higher prices at peak periods the traffic at that time stretches the resources of the business,hence a little extra price is added as contribution towards maintenance of existing facilities and possible upgrade in the near future.
This approach is also known with telecommunication firms such as Vodafone and MTN.
Answer:
How much do you make in interest in a year?
<u>$ 1100</u>
How much would you need to have made for your spending power to keep up with inflation in that year?
<u>$ 1782
</u>
How much buying power did you lose in that year because of inflation?
<u>$ 682
</u>
Explanation:
Your interest formula is given to you.
Interest in a year = principal (the amount invested) * rate (the interest rate) * period (the time you're measuring)
Interest = 55,000 * 2% * 1 year = 55,000 * 0.02 * 1 = $1,100
How much would you need to have made for your spending power to keep with inflation? Your interest rate would have needed to match the inflation rate, otherwise prices are going up faster than you're saving.
Required interest = 55,000 * 3.24% * 1 year = 55,000 * 0.0324 * 1 = $1,782
How much buying power did you lose? The difference between your required interest and your actual interest.
Buying power lost = 1,782 - 1,100 = $682. You lost this much in buying power.
Hope that helped :)
A) Accounting profits dont take implicit costs into account, only "real" or quantifiable costs.
Thus the present value of a 120,000 lease at 5% for three years with explicit costs of $40,000 maintenance is:
PV = [ FV/(1+r)^n ] - (Explicit Cost)
PV = 120000/(1.05^3) - (40000*3)
B) same thing but add implicit costs ...
PV = 120000/(1.05^3) - (40000*3) - (55000*3)
Answer:
The amount of interest accrued as of December 31, 2016 is $10,980.
Explanation:
On December 31, two months interest is accrued and this is equivalent to 61 days (30 days for November and 31 days for December).
Calculation of Interest accrued is as follows ;
Interest accrued = $360,000 × 6% × 61/120
= $10,980
