Answer:
D) It is equivalent to 4.06% paid annually
Explanation:
Since it is not talking about annuity and simple compound interest, therefore assuming investment value = $100 then interest will be as follows:
Interest for each quarter = 
= 1%
But this 1% will be paid on the compounded value
Interest at end of Quarter 1 = $100 X 1% = $1
Compounded value at end of Quarter 1 = $100 + $1 = $101
Interest at end of Quarter 2 = $101 X 1% = $1.01
Compounded value at end of Quarter 2 = $101 + $1.01 = $102.01
Interest at end of Quarter 3 = $102.01 X 1% = $1.0201
Compounded value at end of Quarter 3 = $102.01 + $1.0201 = $103.0301
Interest at end of Quarter 4 = $103.0301 X 1% = $1.030301
Compounded value at end of Quarter 4 = $103.0301 + $1.030301 = $104.060401
Now net return annually = $4.060401/$100 = 4.06%
Final Answer
D) It is equivalent to 4.06% paid annually
Present Value involves discounting, and future value involves compounding.
The find present value of a dollar a year from now, we must discount by the discount rate, since a dollar a year from now is not worth as much as a dollar today.
To find the future value (in a year) of a dollar we receive today, we increase the dollar by the discount rate, since our dollar today is worth more than a dollar a year from now.
Answer:
D. Switching cost strategy
Explanation:
The software manufacturer has incorporated the use of switching cost strategy by making it difficult for customers to substitute their software product for another.
Switching costs: it is also known as switching barrier. This is a the cost incurred by the customer as a result of changing brands, product, services or suppliers.
The higher the cost of switching; the lesser a customer would be willing to switch between brands, the lower the switching cost; the higher the customer would be willing to switch between brands.
Switching cost includes:
• Psychological cost: This is the cost of a customer deciding whether the new product or services would be better than the old product
• Effort-based cost: This refers to the effort a customer will put in while switching brands such as the paperwork involved.
• Time cost: The amount of time used while a customer is switching product
Strategies used by firms to discourage its customers from switching
1. Charging a high cancellation fee for service cancellations.
2. Adopting a lengthy cancellation process for service cancellations.
3. Requiring significant paperwork for service cancellations.
Consider the market for portable air conditioners in equilibrium. A summer of unseasonably cool weather would cause both the equilibrium price and quantity to decrease. A market-clearing price, often referred to as an equilibrium price, is the consumer cost associated with a good or service when supply and demand are equal or nearly equal.
The manufacturer or vendor is free to transfer as many units as they like, and the consumer is free to access as many units as they like. By setting the supply function to equal the demand function, Qs = Qd, you may determine the equilibrium price.
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Answer:
Fiscal policy is the manner in which a state changes its degrees of consumption and duty rates to track and effect the economy of a country. It is the financial arrangement approach by which a national bank influences the cash supply of a country.
Part a)
It is an operational slack on the grounds that the new venture will be taking two years to be done and the period between the purpose of execution of an approach or methodology and the moment that it starts to take sway is called operational slack.
Part b)
It is an acknowledgment slack in light of the fact that the government officials are making time for taking a move against expansion and the acknowledgment slack is the deferral in time between the events of a stun in economy.
Part c)
It is an authoritative slack since it requires some investment for the legislators to perceive the issue of downturn until the bill improvement is at last endorsed and the time interim between perceiving an issue and making a move to manage or resolve it is called a managerial slack.
Part d)
It is an operational slack in light of the fact that a year is spent by the government offices spend for building up a lot of guidelines and the period between the purpose of usage of an arrangement or method and the moment that it starts to take sway is called operational slack.
