Examine Example 17-13 Why Are the % Changes Different?
A)They Are Actually the Format

question 20

Multiple Choice

Examine Example 17-13.The basic data is repeated here,in financial calculator format: FV = 1000,N=30,PMT=50
$$\begin{array} { | l | l | l | } \hline \mathrm { I } / \mathrm { Y } & \text { Price=PV } & \% \text { change } \\\hline \text { At } 10 \% & \$ 1,000.00 & \\\hline \text { At } 8 \% & \$ 1,172.93 & + 17.29 \% \\\hline \text { At } 12 \% & \$ 862.35 & - 13.77 \% \\\hline\end{array}$$ Why are the % changes different?

• A)They are actually the same: the table includes an error.
• B)The prices shown are rounded to the nearest penny,slightly moving the % changes.
• C)The relationship between interest rates and price is not linear.
• D)Other factors,including duration and coupon rate,will also affect the relationship between interest rates and prices.

Apply multi-step percent-based calculations to solve business problems.

Understand and calculate mark-up rates and selling prices in business scenarios.

Analyze the impact of discounts, mark-downs, and operating expenses on product pricing.

Determine the financial outcomes (e.g., profit, break-even) related to various pricing strategies.

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