An Appliance Store Sells a TV for $1,200 and Gives

question 72

Multiple Choice

An appliance store sells a TV for $1,200 and gives their customers a full 3 years to pay for the TV. If interest rates are 5%, what is the equivalent sales price of the TV when the customer takes the full 3 years to pay for it?

• A) $991.72
• B) $1,036.61
• C) $1,104.14
• D) $1,389.15

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Definitions:

Charismatic Authority

Authority based in the perception of remarkable personal qualities in a leader.

Traditional Authority

A form of leadership where power is legitimized by longstanding custom, tradition, or religious beliefs.

Legal-Rational Authority

Authority based in laws, rules, and procedures, not in the heredity or personality of any individual leader.

Bureaucracy

A type of secondary group designed to perform tasks efficiently, characterized by specialization, technical competence, hierarchy, written rules, impersonality, and formal written communication.