On February 1, John Signed a Contract to Pay Janet

question 8

Multiple Choice

On February 1, John signed a contract to pay Janet $4,500 plus interest on April 2 and $5,500 plus interest on July 31. Both payments carried a 6.5% interest annually. Janet then sold both contracts to Fred on May 1 at a rate of 4.5% annually. Determine how much she received.

• A) $10,145.20
• B) $10,300.18
• C) $10,451.07
• D) $10,618.30
• E) $11,863.54

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Definitions:

Price Elasticity

An evaluation of consumers' reaction in terms of the quantity of a good they demand when its price changes, indicating their price sensitivity.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a specific price over a given period of time.

Price Rise

An increase in the cost of goods or services, often influenced by factors like supply and demand, inflation, or production costs.

Supply Elasticity

The degree to which the supply of a commodity reacts to shifts in its market price.