In order to get a better understanding how different groups of customers feel about its product, the Company need to segment the market.
Market segmentation refer to a marketing strategy that divide the customers into different groups and implement unique strategies exactly to target a specific group
Answer:
(1) $9,973.15
(2) 10.7%
Explanation:
(1) A = P(1+r)^n
A (estimated cost of the wedding) is the total amount to be saved = $52,000
r = interest rate = 3.5% = 0.035
n = duration of savings = 4 years = 4×12 = 48 months
52000 = P(1+0.035)^48
52000 P(1.035)^48
52000 = P(5.214)
P = 52000/5.214 = 9,973.15
Amount to be saved each month is $9,973.15
(2) A = P(1+r)^n
A is the total amount the coin was resold = $297,500
P is the amount the coin was purchased = $219,000
n is the duration of the investment = 3 years
297,500 = 219,000(1+r)^3
(1+r)^3 = 297,500/219,000
(1+r)^3 = 1.358
1+r = (1.358)^1/3
1+r = 1.107
r = 1.107 - 1 = 0.107 = 10.7%
Economic fluctuations<span> are simply </span>fluctuations<span> in the level of the national income of a country representing growth or contraction. A market </span>economy<span> is not static. It's dynamic. A rise in national income means an </span>economy<span> is growing, while a decline in national income means that an </span>economy<span> is contracting.
Hope this helps!</span>
Answer:
The answer is hedging.
Explanation:
Omega is engaging in hedging. Omega is locking the future spot price of the currency now. If this transaction happens over the counter, we call it forward contract. And if it happens at the exchange, we call it futures.
Hedging the foreign exchange risk is to reduce the risk of adverse depreciation of the currency in which Omega is expecting to receive.
Hedging is very important in risk management.
