Second Hand Software Needs to Accumulate $12,000 in 3 Years

question 108

Multiple Choice

Second Hand Software needs to accumulate $12,000 in 3 years to meet future needs. What sinking fund payment would they need to make at the end of each year, at 6% interest compounded annually? (Use Table 12-1 from your text)

• A) $4,110.34
• B) $3,769.32
• C) $4,392.65
• D) $4,634.15

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Definitions:

Resale Price Maintenance

A practice where a manufacturer and its distributors agree on the minimum price at which a product can be sold to consumers.

Vertical Price Fixing

A form of price fixing where participants at different levels of the same supply chain coordinate to control prices, often illegal.

Minimum Retail Price

The lowest price at which a product is allowed to be sold, often set by the manufacturer to maintain a product's perceived value.

Independent Buyers

Individuals or entities that purchase goods and services for their consumption or use, not influenced by the manufacturer's or seller's affiliations.