Some Developers of Apps for the Apple IPhone Price Their

question 245

Multiple Choice

Some developers of apps for the Apple iPhone price their apps low at launch to encourage sales and get attention so they can move into the prestigious "Top 25" list. Then, they frequently raise prices to get a higher profit margin on later sales. The initial low price is a(n) :

• A) Noncumulative quantity discount.
• B) Temporary sale.
• C) Introductory price deal.
• D) Skimming price.
• E) Cumulative quantity discount.

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Definitions:

Principal Value

The original sum of money invested or loaned, prior to any earnings, interest, or loss.

Term Deposit

A banking term for a fixed-term investment where money is deposited at an agreed interest rate and cannot be withdrawn until the term has expired without incurring a penalty.

Maturity Value

The total amount that will be paid to an investor at the end of a bond's term or upon maturity of an investment.

Interest Components

The different parts that make up the total interest calculation, including the principal amount, interest rate, and time period.