Answer:
The correct answer is $1,114.64
Explanation:
According to the scenario, the given data are as follows:
Rate (Semiannual) = 6% ÷ 2 = 3%
Time period = 5 years
Time period (semi annual) (Nper) = 5 × 2 = 10
Face value (PV) = $1,000
payment (pmt) = $1,000 × 4%/2 = $20
We can calculate the FV by using financial calculator,
The attachment is attached below.
So, the Price = $1,114.64
Answer:
$11880
Explanation:
Given that:
In a local Honda Dealership;
Last year, your dealership earned a record profits of $1.5 million
according to the local Chamber of Commerce, your earnings were 10 percent less than either of your competitors.
The Price Elasticity of demand E = - 4.5
Marginal cost of a midsized automobile = $11,000
Let assume that In your market, you compete against two other dealers
From The above given data , the objective is to determine the What price should you charge for a midsized automobile if you expect to maintain your record sales.
So; in order to achieve that ; we consider the scenario of an Oligopoly market by using the markup formula for homogeneous product Cournot Oligopoly which can be represented as:
P = 1.08 × 11000
P = $11880
Hence. the price you should charge for a midsized automobile if you expect to maintain your record sales is $11880