Solved

Scenario 10.2 Use the Following to Answer the Questions

question 192

Multiple Choice

Scenario 10.2
Use the following to answer the questions.
Traveler is a bus line operating in the Northeast and Midwestern United States, plus in Canada. It offers travelers a cheap alternative to driving and flying between large cities, keeping the fares extremely low yet offering the latest technology. Unlike the traditional StarTravel Lines, Traveler is an express service, and is equipped with Wi-Fi, video screens, headsets, and seat belts. Many buses also run on biodiesel fuel. Additionally, Traveler picks up and drops off people in the centers of cities rather than at inconveniently-located terminals. Patrons can book tickets at Traveler.com, where some fares begin at just $1. Routes are limited, and are offered out of cities such as Toronto, New York, Baltimore, Philadelphia, and Chicago. Recently, its competitor StarTravel, has launched two new bus lines, Pathfinder and Mestra, with similar fares and high-tech amenities. A fare on Mestra bus from Buffalo, NY to New York City is $50.00 roundtrip, while the same fare through Greyhound's traditional bus line costs $92.00. The benefit of StarTravel's traditional line is that there are more departure times and more stops in smaller towns along the way.
-Refer to Scenario 10.2. When StarTravel launched the Pathfinder and Mestra bus lines, this is an example of _____.

Definitions:

360-Day Year

A financial convention that simplifies the calculation of interest by assuming a year has 360 days.

Retail Gift Stores

Commercial establishments focusing on selling various gift items including souvenirs, handmade crafts, and other unique products to customers.

Ordinary Simple Interest

Interest calculated on the principal amount of a loan or investment, based on a 360-day year.

Ordinary Simple Interest

A method for calculating the interest charge on a loan or investment based on the original principal, rate, and length of time, without compounding.