A Grocery Store Manager Must Decide Whether to Buy Four

question 49

Multiple Choice

A grocery store manager must decide whether to buy four rug cleaners to rent to customers.The manager estimates that the first would yield $200 a year,the second $150,the third $75,and the fourth $20.If the interest rate is 12 percent and each rug cleaner costs $500,how many should the manager buy?

• A)none
• B)one
• C)two
• D)three
• E)four

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Definitions:

Consumption Tax

A tax on the purchase of goods and services.

Income Tax

A tax levied by governments on individuals or businesses based on their income or profits.

Flow Measure

A metric that quantifies the movement or transfer of resources, goods, services, or financial assets over a specific period of time.

Standard Of Living

A measure of the wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.