Your Company Plans to Increase the Monthly Fees It Charges

question 24

Multiple Choice

Your company plans to increase the monthly fees it charges to its clients, starting in September. You are drafting a letter to mail to your clients, to inform them of this increase and hopefully persuade them to keep their businesses with you.
-In analyzing your audience you determine that ________.

• A) the clients need to be made aware of the fees they currently pay
• B) the clients need to know how your company will use the revenue from the fee increase
• C) the clients don't need this information until September since that is when the increase will go into effect
• D) the clients need to be told what the new fee structure is
• E) the clients cannot be expected to understand your message

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Definitions:

Compounded Semiannually

Interest on an investment that is calculated twice a year and added to the principal sum.

Initial Deposit

The first sum of money placed into an account or investment, serving as the starting balance.

Compounded Monthly

A method of calculating interest where the interest earned each month is added to the principal, so that the balance doesn't merely grow, it grows at an increasing rate.

Future Value

The future value of a current asset, calculated by applying an estimated growth rate over a specific period.