Answer: option A is the correct option.
Cash price = 106.00
Explanation:
Cash price = quoted price + accrued interest
CP = Qp + I ..........................(1)
Quoted price = 105
Accrued interest = ?
STEP1 : FIND INTEREST;
Because the interest is not compounded
Accrued Interest = PRT ..........(2)
P= principal ( the face value)
R = rate per annum
T= period
P= 100
Since the period of payment of the face value was from April 1 to October 1 that means the period is 180 days, that means the 12% rate per annum (360 days), should be 6% rate per halve annum (180 days).
Therefore;
R = 6%
Since rate is applied every 30 days of the period which is 30/360 for an annum. Our period is 180 that's means rate will be applied to 30/180.
Therefore;
T = 30/180
Therefore using equation 2
I = 100 × 6% × (30/180) = 1.00
Accrued interest= 1.00
STEP 2: FIND CASH PRICE
using equation 1
Cash price = 105 + 1.00 = 106.00
Six-packs of soda, cartons of eggs, and three-packs of paper towels are all examples of products sold using a block pricing strategy.
A product is an object, system, or service provided to consumers on demand. That's all we can offer to the market to meet your wants and needs.
Item is for sale. Products are services or items. It can be in physical or virtual or cyber form. All products are made at one price and sold at one price. Calculated prices vary by market, quality, marketing, and target segment.
Learn more about products here:brainly.com/question/25922327
#SPJ4
Explanation:
13,200 Rent prepaid on January 1 for 1 year
÷ 12 Months
$ 1,100 Rent expense per month
Thus, $1,100 Rent expense per month
× 7 Months
$7,700 Rent expense for January through July
At July 31, Aiden's Tavern should record $ 7700 of rent expense.
