Answer:
The rate of return on this investment is 6.06%
Explanation:
Rate of return or holding period return is the rate of income earned during the period in which the investment is held. It includes any income in the form of interest received or dividend and price difference.
Interest received during 3 years = 1,000 x 6.5% x 3 = $195
Price difference = Current price - Initial Price = 1089.54 - 12,11.16 = -121.62
Rate of return = ( ( Income received + Price change ) / Initial price ) x 100
Rate of return = ( ( $195 + (-121.62) ) / 1211.16 ) x 100
Rate of return = ( $73.78 / $1,211.16 ) x 100
Rate of return = 0.0606
Rate of return = 6.06%
Holding period return is 6.06%
Answer:
One important factor that Vivian needs to consider is that demand changes as a result of changes in price, however, other factors could affect the demand for goods or services, examples are, changes in the price of related goods, the income of the people, changes in preference etc.
Therefore, based on this fact, Vivian should consider "Price elasticity of demand." Price elasticity of demand can be defined as a measurement used in economics to show the responsiveness or elasticity of the quantity demanded of a good or service to a change in its price when nothing but the price changes.
Answer:
Medlock will receive $2,940
Explanation:
Credit terms of 2/10, n/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after sale with net credit period of 30 days.
According to given data
Sales = $3,000
As the payment is made within discount period, so discount will be availed
Discount = $3,000 x 2% = $60
Now deduct the discount from due balance to calculate the amount received.
Amount Received = $3,000 - $60 = $2,940
The term that refers to the cost that stimulates or inspires an economic decision is called INCENTIVE. Most of the type, incentives come in a form of payment or cash in the economic perspective. This gives an individual more reason to strive harder to become better in every action or task he performs.