A Contract Requires Payments of $2,000 and $3,000, 90 Days

question 91

Multiple Choice

A contract requires payments of $2,000 and $3,000, 90 days and 120 days, respectively, from today. What is the value of the contract today if the payments are discounted to yield a rate of return of 12%?

• A) $4,824.06
• B) $4,828.66
• C) $4,831.48
• D) $4,837.87
• E) $5,177.53

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Definitions:

Bundle Pricing

A pricing strategy where multiple products or services are packaged together and sold at a single price, often at a discount compared to purchasing each item separately.

Product-Line Pricing

Setting prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item.

Discount Pricing

A marketing strategy where products or services are offered at a reduced price to stimulate demand or attract customers.

Bundle Pricing

A pricing strategy where multiple products or services are packaged together and sold at a single price.