For the Online Wine Club in Question 1 and the Upscale

question 10

Essay

For the online wine club in Question 1 and the upscale hairdressing salon in Question 2, discuss the benefits to the companies from retaining the long-term customers.

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Definitions:

Maturity

The date on which the principal amount of a financial instrument is due to be paid back in full.

Non-interest-bearing

Referring to financial instruments or accounts that do not earn interest over time.

Compounded Quarterly

Calculating interest by adding previously earned interest to the principal amount at the end of every quarter, leading to an increase in the interest amount over periods.

Compounded Annually

Interest computed annually on the initial sum as well as on the interest accrued in past periods.