Your local movie theater earns a total revenue of $40,000 per month when the price of a movie ticket is $8, and it earns a total
revenue of $35,000 when the price of a movie ticket is $10. Demand is . Part 2 (1 point)See Hint When your local Internet service provider increased its monthly charge from $40 to $50, the number of subscribers fell from 2,000 to 1,800. Demand is . Part 3 (1 point)See Hint Last month, your local coffee shop charged $4 for a cappuccino and sold 150 cappuccinos. This month, it increased the price of a cappuccino to $5 and is on track to sell 120 cappuccinos.
2 answers:
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Answer:
James' credit union loan rate is 8.88% APR, the local bank loan rate is 9.34% APR.
Explanation:
Hi, since in both cases payments would be done in a monthly basis, we have to assume that the rate that we are looking for is APR (compounded monthly), and since there is no additional information in regards that 9.25% rate, we can assume that this is effective annually, so let´s convert this effective monthly rate into APR (compounded monthly)
First, we have to convert it into an effective monthly rate, that is:
Then we multiply by 12 and we get 0,088796 , which is 8.88% APR (compounded monthly)
This way James can compare both credits. The cheaper loan is from the credit union.