An Event Planner Wants to Determine a Price for a Package

question 144

Multiple Choice

An event planner wants to determine a price for a package of garland of silk flowers.Its cost is $7.00.She wants a markup of 30 percent based on selling price.Which of the following is closest to the price she should charge her customers?

• A) $15
• B) $18
• C) $10
• D) $12

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Definitions:

Effective Rate

The interest rate on a loan or financial product restated from the nominal rate as an interest rate with annual compound interest payable in arrears.

Annuity Investment

An economic tool designed to disburse a consistent flow of funds to someone, primarily for retirement preparation purposes.

Effective Interest Rate

The real rate of interest earned or paid on an investment or loan, taking into account the effect of compounding over a specific period.

Maturity Value

The total of principal plus interest due on the maturity date of a loan or investment.