Answer:
1-a.
in order to determine the present value of option a we can look for the PVIFA (annuity factor) for 24% / 12 = 2% monthly rate and 25 payments.
PVIFA = 19.523
Present value of the 25 payments = $540 x 19.523 = $10,542.42
+
Present value of final payment = $10,000 / (1 + 24%)²⁵/¹² = $6,388.10
PV = $16,930.52
Present value of option b = $16,638
1-b.
- b. option b (lower present value)
Answer:
Willingness to pay
Revenue
Two
Elastic
Inelastic
Explanation:
Price discrimination is when a producer or a seller charges different prices for the same product usually in different markets.
In price discrimination, a seller attempts to remove or reduce consumer surplus by charging the consumer at his willingness to pay. For price discrimination to be effective, a seller must be able to estimate the willingness to pay of consumers.
Price discrimination is successful when a seller earns higher profits when she discriminates compared to when she didn't price discriminate.
Price discrimination exists in the airline industry. One of the ways price discrimination exists in the airline industry is through charging to check bags. Customers ( people who board airplanes) are distributed into two groups- those who won't pay to check bags and those who would pay to check bags.
It is assumed that those who would pay to check their bags have a price inelastic demand because they are indifferent to paying an extra amount for their luggage.
Inelastic demand is defined as when a small change in price has no effect on quantity demanded.
While it is assumed that those who won't pay to check their bags have an elastic demand because they are unwilling to pay extra to check their luggages.
Elastic demand is when a change in price has effect on quantity demanded.
Answer:
Unamortized discount is $43,700
Explanation:
Unamortized bond discount=original bond discount-amortization to date
original bond discount is $46,000
Amortization =interest payable-interest expense
interest payable=$400,000*10%*6/12
=$20,000
Interest expense=$354,000*10%*6/12
=$17,700
amortization of discount=$20,000-$17,700
=$2300
unamorized bond discount=$46000-$2300
=$43,700
The unamorized bond discount at the end of the first six months is $43,700
The statement " whether employer-sponsored or privately purchased, disability insurance plans will cover 70% of your lost income" is: b) False.
<h3>What is disability insurance plans?</h3>
Disability insurance plans can be defined as an insurance plan that help to cover the cost of people that are physically disabled.
When a person is disable due to work hazard the employers may tend to provide short-term or long term disability insurance plans that will help to provide income to disable person.
Therefore the statement " whether employer-sponsored or privately purchased, disability insurance plans will cover 70% of your lost income" is: b) False.
Learn more about Disability insurance plans here: brainly.com/question/16810465
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