Value Consists Of

question 55

Multiple Choice

Value consists of:

• A) a product's proprietary characteristics and attributes for which customers are willing to pay.
• B) a product's performance characteristics and attributes for which customers are willing to pay.
• C) a product's proprietary characteristics and attributes for which customers consider paying.
• D) a product's performance characteristics and attributes for which customers consider paying.

Understand the fundamental principles of time value of money including present and future values.

Identify and calculate different interest rates including APR, EAR, and stated rates.

Distinguish between ordinary annuities and annuities due, and calculate their present and future values.

Understand and calculate the effective annual rate (EAR) and how it impacts savings and loan calculations.