Setting a Price to Achieve an Annual Target Return-On-Investment (ROI)

question 73

Multiple Choice

Setting a price to achieve an annual target return-on-investment (ROI) is referred to as

• A) target return-on-investment pricing.
• B) target return-on-profit pricing.
• C) target return-on-sales pricing.
• D) target profit pricing.
• E) customary pricing.

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Definitions:

Compound Interest

Interest for a loan or deposit that includes calculations on the original principal amount as well as the interest accumulated from earlier periods.

Decimal Multiplication

A mathematical operation involving the multiplication of numbers represented in decimal form.

Compound Interest

Calculating interest by including both the original principal amount and the interest that has been piled up from former periods.

Exponential Functions

Mathematical functions describing growth or decay at rates proportional to the value of the function at any point in time.