Robert Put $15,000 into an Account with a Fixed Interest

question 248

Multiple Choice

Robert put $15,000 into an account with a fixed interest rate two years ago and now the account balance is $16,695.38. What rate of interest did Robert earn?

• A)4.5 percent
• B)5.5 percent
• C)6.5 percent
• D)8.0 percent

Analyze the impacts of the Robinson-Patman act on pricing strategies.

Differentiate between direct and indirect price discrimination.

Evaluate how firms maximize profits through price discrimination.

Calculate optimal pricing strategies for maximizing profits.

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Definitions:

Cash Refund

An amount paid by the seller to the buyer for merchandise that is defective, is damaged during shipment, or does not meet the buyer’s expectations.

Selling Price

The amount of money for which a product or service is offered for sale to customers.

Customer Refund Payable

A liability account representing the obligation of a business to return money to a customer due to overcharging or returning merchandise.

Accounting Equation

A fundamental financial principle representing the relationship between an entity’s assets, liabilities, and equity; expressed as Assets = Liabilities + Equity.