Answer: Option C
Explanation: In simple words, compound interest refers to the interest that includes previously earned and deposited interest in calculating present interest amount along with the principal value.
In the given case, Rosie and Andy both deposited the same amount of principal with same interest rate. Thus, both will earn the same interest in initial year. However, Rosie withdrawal will not give her interest that she could have earned on the first interest amount.
Hence, from the above we can conclude that the correct option is C .
Answer:
Bait and switch.
Explanation:
Bait and switch advertising is advertising one product (the "bait") at a very attractive price, then informing the customer that the advertised product is either unavailable or of poor quality, convincing the customer to purchase a different, more expensive product.
Answer:
total payment = $699,315.73
Explanation:
since Lara is making a 10% down payment, the principal of the loan will = $360,000 x 90% = $324,000
using a loan calculator:
- principal = $324,000
- APR = 6%
- n = 30 years or 360 monthly payments
monthly payment = $1,942.54
total payment = $699,315.73
interests paid = $375,315.73
Answer:
$300 i.e irrecoverable cost of old printer
Explanation:
Sunk costs refer to those costs incurred in the past which can no longer be recovered. Such costs are considered as irrelevant in decision making process since they have no current or future implications.
For example, research and development costs incurred by an enterprise in the past represent sunk costs since those costs can no longer be recovered and secondly have no current or future implications w.r.t investment decisions.
In the given case, the cost incurred in purchase of old printer is a sunk cost, incurred in the past. The irrecoverable part of the said cost i.e $350 less $50 i.e $300 represents sunk cost. Also, the expenditure on old printer's cartridges which costed $80 apiece would be regarded as a sunk cost.
This cost of $300 cannot be recovered and would be considered irrelevant w.r.t the decision of purchasing a new advanced printer.