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Kitty [74]
2 years ago
7

Assume that the amount of money deposited in a bank is proportional to the square of the interest rate the bank pays on this mon

ey. Furthermore, the bank can reinvest this money at 12%. Find the interest rate the bank should pay to maximize profit. (Use the simple interest formula.)
Business
1 answer:
vredina [299]2 years ago
7 0

Answer:

8% interest.

Explanation:

<em>P</em> = 0.12<em>m</em> - <em>im</em>

<em>m = kr²</em>

<em>P = 0.12kr² - rkr²</em>

<em>kr² = </em>0.08<em>kr</em>

<em>r = </em>0.08

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<h3>How price impacts revenue?</h3>

Your pricing approach will have an impact on the profit margin you make on each unit sold; assuming you don't lose sales, charging more will result in a higher profit margin. In contrast, higher pricing that result in lower sales volumes might reduce or even erase your profits because your overhead costs per unit rise as you sell fewer units.

<h3>What is ROI and how is it impacted by pricing?</h3>

ROI is to quantify the relationship between an investment's return and cost. ROI is calculated by dividing the benefit (or return) of an investment by its cost. A percentage or ratio is used to represent the outcome.

<h3>How market share is impacted by pricing?</h3>

Customers' interest and loyalty can be attracted by offering lower and more alluring prices. The vital sales that increase market share could increase as a result. In addition to providing promotions, coupons, freebies, and other benefits to customers, a business can consider discounts on the actual cost of the goods.

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<h3>How do prices impact the status quo?</h3>

The more that higher prices denote higher quality, the less sensitive consumers become to price. Competition pricing, also referred to as status quo pricing, is either keeping current prices (status quo) or basing prices on those of rival businesses.

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Learn more about survival pricing: brainly.com/question/18498033

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3 0
9 months ago
If total change in cash = $44,000, net operating cash flows = $22,000, and net investing cash flows = ($13,000); then net financ
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Answer:

Net financing cashflows are $ 35,000.

Explanation:

A company generates cashflow from three activities that are cash from operations , cash from financing activities and cash from investing activities. The company net cash flow is total of these above specified. So we can determine net financing cashflows from the equation given below.

<em>total change in cash = net operating cash flows + net investing cash flows + net financing cash flows</em>

net financing cash flows = $ 35,000

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ruslelena [56]

Answer:

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