A Cruise Ship Has Available a Certain Number of Rooms

question 1

Multiple Choice

A cruise ship has available a certain number of rooms in each of 10 categories of appointments ranging from a two-bunk inside cabin to a suite with an outside patio and indoor sitting area. If a passenger requests a sailing date in which the desired cabin is sold out, which of the following actions would be considered the least viable alternative for the cruise line?

• A) Offer an upgraded cabin at a reduced price.
• B) Attempt to steer the passenger to an available date.
• C) Overbook the cabin.
• D) Offer a downgraded cabin with special privileges such as a $100 certificate for use in the casino.

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Definitions:

Amortized Loan

A loan with scheduled periodic payments that include both interest and principal repayment, ultimately paying off the loan by its maturity date.

Monthly Payment

This refers to the fixed amount of money paid by a borrower to a lender at regular monthly intervals, typically used in the context of loans or mortgages.

EAR

Effective Annual Rate, a comprehensive calculation of interest on a loan or investment, considering the effect of compounding.

APR

Annual Percentage Rate; the annual rate charged for borrowing or earned through an investment, accounting for compounding over the year.