Robin Clark Has a Cell Phone That She Uses Only

question 251

Short Answer

Robin Clark has a cell phone that she uses only for emergencies. The cost of the phone is $40 a month. The cellular company is offering unlimited nights and weekends for an additional $10 a month ($120 a year). Robin thinks it would be "cool" to have this benefit and, after all, $10 a month is not much. Show Robin how much she will have in 20 years if she invests this $120 a year at 9% instead of accepting the unlimited nights and weekends offer.

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Definitions:

Negative Settlement Zone

Negative Settlement Zone refers to a situation in negotiation where the interests of the parties involved do not overlap, making it hard to find a satisfactory agreement for both.

Negotiation Process

A series of discussions and compromises between two or more parties to reach a mutually acceptable agreement.

Bargaining Zone

The range or area within which an agreement is satisfactory to both parties involved in negotiation, typically between employer and employee or buyer and seller.

Wildcat Strike

A wildcat strike occurs when workers suddenly go on strike, without the authorization (presumably) of the striker’s union and while a binding labor agreement is still in effect.