a partially amortizing mortgage is made for $67,000 for a term of 10 years. the borrower and lender agree that a balance of $21,400 will remain and be repaid as a lump sum at that time. required: a. if the interest rate is 7 percent, what must monthly payments be over the 10-year period? b. if the borrower chooses to repay the loan after five years instead of at the end of year 10, what must the loan balance be?

Answers

Answer 1

a) The monthly payment amount would be $748.39

b) The loan balance be $54,160.11

a) We use the PMT function in excel here

=PMT(rate, nper, PV, FV)

Here

Rate = 7%/12

Nper, period = 10 years*12 = 120

PV, present value = $76,000

FV, future value = $23,200

Thus we type in the following in any of the excel cell

=PMT(7%/12,120,-76000,23200)

And the answer is $748.3861

b) We use the FV function in excel here

=FV(rate, nper, PMT, PV

Here

Rate = 7%/12

Nper, period = 5 years*12 = 60

PMT, $748.39

PV, present value = $76,000

Thus we type in following in any of the excel cell

=FV(7%/12,60,748.39,-76000) = $54,160.11

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Related Questions

in the context of the data component of an information system, external data sources include . a. sales records b. personnel records c. transaction data d. labor statistics

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In the context of an information system's data component, an example of an external data source is labor statistics.

Information systems are formal, sociotechnical organizational structures developed for the purposes of gathering, processing, storing, and disseminating information (IS). From a sociotechnical perspective, tasks, people, structures (or roles), and technology make up information systems. Information systems are defined as the integration of components for the collection, archiving, and processing of data In the context of an information system's data component, an example of an external data source is labor statistics information, addition to knowledge, and creation of digital products that support decision-making.

A computer information system is a system that combines people and computers to analyze or interpret information. Sometimes the name of a computer system with software installed is all that is used.

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a fully amortizing cam loan is made for $137,000 at 6 percent interest for 20 years. required: a. what will be the payments and balances for the first six months? b. what would payments be for a cpm loan? c. if both loans were repaid at the end of year 5, would the lender earn a higher rate of interest on either loan?

Answers

If both loans were repaid at the end of the fifth year, the larger monthly payment would be $891.51.

N=(20*12)=240 I/Y=(6/12)=0.583333333% is entered into a financial calculator.

PV=-134000

By solving for PMT, we obtain that PMT = monthly payments = $1555.85. (Approx)

N=(30*12)=360 I/Y=(6/12)=0.583333333% is entered into a financial calculator.

PV=-134000

Solving for PMT yields the value of $891.51 per month.

The term "loan" describes a category of credit instrument in which a sum of money is lent to another party in return for the value or principal amount to be repaid in the future. Most of the time, the lender will also add interest or finance charges to the principal amount, which the borrower will also be required to pay back along with the principal sum.

Loans can be made for a predetermined, one-time sum of money or they can be used as an open-ended line of credit up to a predetermined maximum. There are many various types of loans, including secured, unsecured, business, and personal loans.

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in littlefield technologies game, the capacity of the three stations are 6, 7, 4 per day. you need to deliver the product in 3 days. to what value do you set max-wip?\\

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The daily capacity of the three stations in the LittleField Technologies game is 6, 5, 4. In two days, you must deliver the item.

In the Littlefield simulation, how many steps does a product go through?

A work facility called Littlefield Technologies assembles receivers for the Digital Satellite System. These receivers are made from electronic component kits that were purchased from a single provider. Board filling, testing, and tuning are the three stations where the four processes of assembly are completed.

In Littlefield simulation, how can lead time be cut down?

The most obvious approach to shorten the lead time is to purchase more machines, but when the students start the game, they have a cash shortage that prevents them from doing so.

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the marketing concept holds that delivering unmatched value to customers is the only effective way to achieve long-term profitability. group of answer choices true false

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true the marketing concept holds that delivering unmatched value to customers is the only effective way to achieve long-term profitability.

Which statement in the marketing idea quizlet is true?

The marketing idea holds that companies should evaluate customer wants before making decisions that will best satisfy them. the quality of being beneficial, profitable, or useful.

What exactly is a marketing concept?  Why is it so important?

The marketing notion holds that a company should work to meet customers' requirements while also pursuing its own objectives through planned operations. It's crucial because businesses need to understand customers want before creating products that will satisfy their demands and wishes.

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the measure of risk for pairs of stocks in a portfolio selection problem is called: a) the covariance of the return. b) the variance of the return. c) the expected return. d) decreasing marginal return. e) none of the choices is correct.

Answers

Answer:

a) the covariance of the return.

Explanation:

The measure of risk for pairs of stocks in a portfolio selection problem is called the covariance of the return.

$2,500 6.5% eight-year bond has annual coupons. if it is purchased for $2,590, the investor will anticipate a 5.4% annual yield for the eight-year investment. find the redemption amount on this bond.

Answers

The interest paid is the fraction of the initial 60 installments (60QP=73 797.83) that has not been applied to the principal.

The equation OLBk=L(1 + i)kQ(1 + i)k1i, which comes from the retrospective approach, will be used in two different ways. (1) Here, L is the loan amount and I is equal to (1 +.058). The effective monthly interest rate is 1/12, Q is the payment amount, and ki is the period in which the loan balance is still owed. We will first use this equation to determine Q. The OLB will be zero at the conclusion of the previous period, k= 15 12 = 180, therefore 0 = OLB180 =L(1 + i)180 Q(1 + i)180 1i(2)Q=L(1 + i)180 (1 + i)180 1i1(3)= 2434.15. The outstanding loan balance for the first five years is then determined by setting k= 5 12 = 60, which results in OLB60 = L(1 + i)60 Q(1 + i)k1i(4)= 222 749.06. P=LOLB60 = 72 250.94 is the principal that was paid throughout this period, and and the interest paid is the fraction of the initial 60 installments (60QP=73 797.83) that has not been applied to the principal.

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the federal government makes interest payments on __________ while you’re enrolled in school at least half-time, for the first six months after you leave school, and during any period of deferment.

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Subsidized federal loans is the required answer for the given blank.

What is Subsidized federal loans?

Subsidized loans are mortgages for undergraduates with a need for money, which is decided by your cost of attendance less your estimated family contribution and other forms of financial help (such as grants or scholarships). Interest on the subsidized loans doesn't really accumulate while you are enrolled in school full-time or during deferral periods.

Your federal college education enters repayment when you graduate, drop under a half-time load, or stop attending. However, you have a six-month grace period prior to being obliged to start making monthly payments if you have a Direct Subsidized, Direct Unsubsidized, or Government Family Education Loan.

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The action toy company has decided to manufacture a new train set, the production of which is broken into six steps. The demand for the train is 4,800 units per 40-hour workweek:.

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The new train set's manufacturing cycle time is 32 seconds due to demand. Theoretically, there should be 3.75 or 4 workstations each employee.

Calculation: The results are displayed below:

(A) Cycle Time is (40 hours, 60 hours, 60 hours) x (4,500) x output per week = 32 seconds.

(b) In addition, the theoretically necessary number of workstations is equal to the sum of all task times divided by the cycle time:

(22 + 30 + 15 + 14 + 12 + 27) divided by (32 sec) equals 3.75 or 4.

We can determine the cycle time and theoretically required minimum number of workstations by applying the aforementioned formulas.

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real estate taxes represent the largest single source of revenue for a large portion of local governments. most property taxes are applied in relation to the value of the property, or in other words, they are:

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Real estate taxes represent the largest single source of revenue for a large portion of local governments. most property taxes are applied in relation to the value of the property, or in other words, they are: AdValorem

An ad valorem tax can be defined as the value of a property is known as a property tax or millage rate. It  is located is responsible for collecting the tax. A town, a county, a federated state, or the federal government are example. One is that prices for things like utilities, equipment, fuel, insurance, labor, and management have all greatly increased. There are also less taxable properties, which is another factor.

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how reliable is the electricity supply? how good are banking services? how well-connected is the country in terms of a transportation system? how good is the telephone and communication system? are all questions related to the of a country that need to be looked into while assessing global markets.

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all questions related to the infrastructure of a country that need to be looked into while assessing global markets.

When a nation has solid infrastructure, it typically also has good banking services, good telephone and communication systems, and good energy grid systems. the market where products and services from one nation are exchanged with citizens of other nations. The use of marketing ideas in more than one nation, by businesses abroad, or across international borders is known as global markets. It is accomplished by the export of a company's goods to other countries, admission through a domestic joint venture with another company, or foreign direct investment. The creation of the nation's marketing mix requires the use of international marketing.

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carolina insurance wants to create a more interactive approach to advertising in order to build strong relationships with their customers. which of the following represents the preferred advertising medium to achieve their goal? a. the internet b. trade shows c. newspapers d. radio

Answers

The Internet represents the preferred advertising medium to achieve their goal.

Insurance is known to be a way for managing your risk. When you purchase insurance, you are known to purchase protection against sudden financial losses. The insurance company pays you or someone you choose if some unfortunate circumstances happen to you.

The Internet also called 'the Net' is known to be a worldwide system of computer networks -- which is a network of networks in which users at any one computer can have permission to procure details from any other computer. This advertising medium has gained huge popularity among the present generation.

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nnis company reported net income of $50,000 on sales of $300,000. the company has average total assets of $500,000 and average total liabilities of $100,000. what is the company's return on equity ratio?

Answers

12.5%

Return on equity = Net income ÷ Average stockholders' equity

Return on equity = Net income ÷ (Average total assets - Average total liabilities)

Return on equity = $50,000 ÷ ($500,000 - $100,000) = 12.5%

Income is an opportunity for consumption and savings that an entity receives within a specified time frame, which is generally expressed in monetary terms. Income is difficult to conceptually define and the definition may vary in different areas.[2][page needed] For example, and a person's income in an economic sense may differ from their income as defined by law. An extremely important definition of income is the Haig-Simons income, which defines income as consumption + change in net worth and is widely used in economics.For households and individuals in the United States, income is defined by tax law as an amount that includes any wage, salary, profit, interest payment, rent, or another form of earnings received in a calendar year.[3] Discretionary income is often defined as gross income less taxes and other deductions (eg mandatory pension contributions) and is widely used as a basis for comparing the welfare of taxpayers.

In public economics, this concept can include the accumulation of both monetary and non-monetary consumption power, with the former (monetary) being used as a proxy for total income.For a business, gross income can be defined as the sum of all income minus cost of goods sold. Net income nets expenses: net income equals revenue minus cost of goods sold, expenses, depreciation, interest, and taxes.

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at the end of 2021, stacky corporation had $500,000 in liabilities and a debt-to-assets ratio of 0.5. for 2021, stacky had an asset turnover of 3.0. what were annual sales for stacky in 2021?

Answers

What is a company's total asset turnover if it has $8 million in total assets, a 5% net profit margin, and a ROI?

The asset turnover ratio is equal to Net Sales / Average Total Assets.

It is the gross sales for a certain time period less any discounts, allowances, or refunds used by the client. When comparing the asset turnover ratios of several firms, be sure the net sales data is derived from the same time period. Total Liabilities minus Total Assets

An advice Your balance sheet may provide the numbers you need to calculate your debt-to-asset ratio.

When liabilities are $75,000 and assets are $68,000, the debt to asset ratio is 1.1.

The entire debt divided by the total assets yields the total debt to total assets ratio.

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which of the following statements is true? group of answer choices a person working for a company is classified as part of the resource category capital. a person with the particular talent for organizing the resources of land, labor, and capital to produce goods, seek new business opportunities, and develop new ways of doing things is classified as part of the resource category labor. oil is classified as part of the resource category land. a machine in a factory is classified as part of the resource category land. a and d

Answers

Answer:

Oil is classified as part of the resource category land.

an individual wishes to have a complete liquidation of the account done over a 5 year time frame. he or she should elect which type of withdrawal plan?

Answers

An individual may choose a withdrawal option if they intend to redeem mutual fund shares following a "systematic withdrawal plan." A financial strategy known as a withdrawal plan enables.

Investors to take money out of mutual funds or other investment accounts at financial intervals. This kind of plan is frequently utilised to pay for retirement expenses. But it can also be utilised in various ways. Some retirees withdraw a set sum of money over a predetermined time frame. For instance, you might choose to remove $40,000 annually and reevaluate the amount after five years. These programmes provide guaranteed returns with almost no risk.

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the requirement that developers pay a local government's costs of new development through substantial fees or land in exchange for approval of their land use plans is called a/an

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A planning fee is what developers must pay to the local government through the land in exchange for the government's approval of their land use plans. This price can be significant or equal to the cost of new development.

A levy is a charge that helps cover the expenditures of local government connected with new construction. In exchange for the local government's approval of land-use plans, this fee may take the form of cash or land.

The planning fee is the amount outlined in paragraph 2.8 that you agree to pay us in exchange for the pre-trip services we offer (including training). The planning charge is paid in addition to the deposit and is only refunded in cases where it is expressly stated in the contract.

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FILL IN THE BLANK. Giving hr managers full control access to files in a folder called hr policies while giving hr representatives read-only access to the files in the same hr policies folder is an example of ___ access controls

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Giving HR managers full control access to files in a folder called HR policies while giving HR representatives read-only access to the files in the same HR policies folder is an example of role based access controls.

What is role based access control?

It is a term in computer system security which means giving the right access to the authorized users only. The role based access control restricts the access to the system for unauthorized users, so it secures the system from unwanted changes. The role based access control involves certain permission settings and privileges based on what is the role of the users and whether the user is an authorized personnel to perform any change to the system or data.

Your question is incomplete, but most probably the answer choice were:

SharedManagedSecurityRole based

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what is the transformation of the message into the signal, which is sent over the communication channel from the transmitter to the receiver?

Answers

Encoder is the transformation of the message into the signal which is sent over the communication channel from the transmitter to the receiver. Hence, option C is correct.

The channel encoder's job is to give the GSM receiver the tools it needs to spot transmission faults and eventually fix some of them. In terms of bit error, this will increase the transmission quality. Depending on the transmission mode, GSM uses various encoding standards. Verbal transmissions require a universal language code that the recipient can quickly decode. Communication will fail if the recipient is unable to decode or comprehend the message. For instance, a message encoded in Tamil cannot be decoded by someone who does not understand Tamil.

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The correct question is:

14. Which of the following is the transformation of the message into the signal which is sent over the communication channel from the transmitter to the receiver?

a. Noise

b. Decoder

c. Encoder

d. Sender

which is the largest component of metabolism, accounting for about 65% to 70% of daily energy expenditure?

Answers

The largest component of metabolism, accounting for about 65% to 70% of daily energy expenditure is option C: Resting metabolism

What is a good resting metabolic rate?

The BMR range for the majority of people is 1000–2000. This indicates that they require between 1000 and 2000 calories per day to power their essential processes while they are at rest.

The calories burned when moving around, conversing, or engaging in physical activity are not included in your BMR number.

Therefore, BMR, which makes up 65 to 70 percent of daily caloric burn, is the main factor affecting an individual's total energy expenditure.

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See full question below

Which is the largest component of metabolism, accounting for about 65% to 70% of daily energy expenditure?

A) physical activity

B) food digestion

C) resting metabolism

D) weight cycling

jason owns blue corporation bonds (face value of $10,000), purchased on january 1, 2021, for $11,000. the bonds have an annual interest rate of 3% and a maturity date of december 31, 2030. if jason elects to amortize the bond premium, what are his taxable interest income for 2021 and the adjusted basis for the bonds at the end of 2021 (assuming straight-line amortization is appropriate)?

Answers

Taxable Income &  Adjusted basis for the bonds will be $200 and $10,900 respectively

The portion of your gross income known as "taxable income" is used to determine your tax liability for a certain tax year. Wages, salaries, bonuses, and gratuities are all considered forms of taxable income, as are investment income and different unearned income streams.

Investors must largely take into account the acquisition date on which they bought these assets when determining the tax liability of their bond holdings. This crucial piece of knowledge will help you decide whether the earnings you make will be considered long-term gains or short-term gains, the latter of which being taxed at a much higher rate.

Purchased facevalue of bonds= $10,000

Purchased of a premium of $1000[11,000-10,000]

It is to be amortized of 10 years

1000/10

Bond Premium Amortization = $100

Particulars                                                  Amt.

Interst rate on Bonds[$10,000 x 3%]         $300

Less:- Bond Premium Amortization          $(100)

Interest Income                                          $200

The adjusted basisof the bond -          $10,9000

is as per straight line amortization

[$11,000-$100]

Hence, Taxable Income = $200

Adjusted basis for the bonds = $10900

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suppose milk and cookies are consumed together. if the price for milk rises, what will happen with the demand for cookies?

Answers

If the price for milk rises, the demand for cookies will decrease.

The price of a product plays a major role in the sales of a product and also the sales of other products that are bought in custom with it.

If milk and cookies go together then the price change in one of the products will also influence the sale of the other product. When the price of milk will rise, this means that lesser people will be able to buy the milk due to the higher price. Hence, as cookies go along will milk, the demand for cookies will decrease. People might also have to choose between buying only milk or cookies and hence the demand of cookies will decrease based on the preference in such a case.

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An important difference between the situation faced by a profit-maximizing monopolistically competitive firm in the short run and the situation faced by that same firm in the long run is that in the short run,
a. there are many firms in the market, but in the long run, there are only a few firms in the market.
b. price may exceed marginal cost, but in the long run, price equals marginal cost.
c. price may exceed marginal revenue, but in the long run, price equals marginal revenue.
d. price may exceed average total cost, but in the long run, price equals average total cost.

Answers

An vital difference between the situation faced via a income-maximizing monopolistically competitive firm in the brief run and the state of affairs confronted with the aid of that identical firm ultimately is that inside the quick run, price may additionally exceed common overall fee, however in the long run, rate equals common general cost.

Monopolistic competition is the financial market version with many sellers selling comparable, but not equal, merchandise. The demand curve of monopolistic competition is elastic due to the fact despite the fact that the companies are selling differentiated products, many are nevertheless near substitutes, so if one firm increases its price too high, lots of its clients will switch to merchandise made by using other corporations.

This elasticity of call for is like natural competition where elasticity is ideal. call for is not flawlessly elastic due to the fact a monopolistic competitor has fewer opponents than will be the case for perfect opposition, and due to the fact the goods are differentiated to some diploma, so they are not ideal substitutes.

Monopolistic competition has a downward sloping call for curve. for this reason, simply as for a pure monopoly, its marginal sales will always be much less than the market charge, because it is able to only boom call for by way of lowering prices, however by means of doing so, it have to decrease the costs of all devices of its product. as a result, monopolistically competitive companies maximize profits or limit losses by using producing that amount wherein marginal sales = marginal price, both over the fast run and the long term.

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how did the hawley-smoot tariff passed by the u.s. congress contribute to the great depression?

Answers

Answer:  increased tariffs on foreign imports to the U.S. by about 20%

Explanation:  (hope it helps)

 At least 25 countries responded by increasing their own tariffs on American goods. Global trade plummeted, contributing to the ill effects of the Great Depression.

us banks pays 3% interest for a 1 year deposit. european banks pay 5% interest over the same period. the spot f/x rate is 1.02 euro/usd. what is the expected exchange rate in 1 year? group of answer choices a) 0.96 euro/usd b) 1.04 euro/usd c) 1.00 euro/usd d) it cannot be determined

Answers

The expected exchange rate in 1 year is 1.04 euro/usd.

The exchange rate is the price at which one currency will be exchanged for foreign currency.

Spot Rate: 1.02 EUR/USD

Interest paid in home currency is 5%.

Interest rate in foreign currencies: 3%

We have to find the exchange rate, the formula for the same is

Exchange rate = Spot rate * (1+Home currency interest rate)/(1+Foreign currency interest rate)

Substituting the values, we get

Exchange rate = 1.02*(1+0.05)/(1+0.03)

Exchange rate = 1.02* 1.05/1.03

Exchange rate = 1.04

The correct answer is option b, the expected exchange rate is 1.04 euro/usd.

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a company website that provides public relations and investor information about the company is known as a(n)

Answers

The company is known as an Online newsroom or pressroom.

What is an online newsroom?

A basic web website that serves as a central hub for your company's news and press releases is an online newsroom, also known as an online press room. According to the definition, an online newsroom may not seem like much, but you'd be surprised at how useful they are for businesses.

Online press rooms allow you to entirely control your own narrative and choose what information to make public, in contrast to genuine media coverage. It's also the place to go for all media personnel, opinion leaders, prospective and current clients, and even staff members who want to know what your business has been up to.

By making your media materials accessible online, you make it simple for them to cover your story.

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You hold a diversified p100,000 portfolio consisting of 20 stocks with p5,000 invested in each. The portfolio's beta is 1. 12. You plan to sell a stock with b = 0. 90 and use the proceeds to buy a new stock with b = 1. 80. What will the portfolio's new beta be?.

Answers

The new beta portfolios, which will include 20 equities and 5000 portfolios invested in each, will be 1.150.

How do I determine a portfolio's beta in capm?

To calculate beta, divide the asset's standard deviation of returns by the benchmark's standard deviation of returns. The final value is multiplied by the correlation between the returns on the securities and the benchmark.

How are a portfolio's risk and return determined?

The portfolio beta, which is the weighted average of the various betas, must first be determined in order to proceed. The needed return for the portfolio can then be determined using the CAPM algorithm. The portfolio A + B is anticipated to return 20%.

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A sudden storm threatens the property of Marina Bay LLC. Ngoc, Marina Bay’s sales agent, is on site, but lacks the express or implied authority to bind the firm to the cost of appropriate protective measures. Unable to communicate with Marina Bay, Ngoc
a. has emergency powers to deal with the situation.
b. must await the principal’s express ratification to act.
c. can imply a power of attorney to assume the needed authority

Answers

The Marina Bay LLC property is under danger due to an unexpected storm. Despite being unable to contact Marina Bay, Ngoc is equipped with emergency powers.

Storms are powerful atmospheric disturbances that have low barometric pressure, cloud cover, precipitation, strong winds, and may even have lighting and thunder.

The term "storm" is a general one that is frequently used to refer to a wide range of atmospheric disturbances, from simple rainstorms and snowstorms to thunderstorms, wind, and wind-related disturbances like gales, tornadoes, tropical cyclones, and sandstorms.

Storms are defined in meteorological terms as cyclones with a strong center of low pressure, strong winds that gust between 103 and 117 km/h (64 and 73 mph), heavy precipitation, and occasionally lighting and thunder. For details on certain storm types, see thunderstorm, tornado, and tropical cyclone.

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gagliardi way corporation has an expected roe of 15%. if it pays out 30% of it earnings as dividends, its growth rate will be .

Answers

The growth rate of gagliardi way corporation will be 10.5%.

The annual percentage rate of rise in dividend yield for a specific company is known as the dividend growth rate. A lot of respectable businesses strive to raise the regular dividends provided to shareholders. When valuing companies with a dividend discount model, the dividend growth rate must be calculated.

Significant dividend increase in the past could be an indicator of future dividend growth, which might indicate long-term profitability.

The following is the formula to calculate the dividend growth rate (DGR):

DGR = ROE×(1-payout ratio)

DGR=15%x(1-30%)

DGR=0.15x(0.70)

DGR=0.105x100

DGR=10.5%

The dividend payout ratio is 10.50% as a result.

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which office maintains custody over tax money collected, sells government bonds, and influences stock investments by the public-employee pension funds?

Answers

The Federal Reserve, serving as fiscal agent for the Treasury, shall guarantee that depositaries provide adequate collateralization for public money, as defined above, that surpasses relevant insurance limitations based on the collateral requirements provided by the government agencies.

Their constitutional power also extends to the executive branch, which they may sway by accepting or rejecting presidential nominees for positions at agencies, managing the federal budget, and using their right to filibuster (delay or prevent legislation through protracted discussion). A proposal can either be accepted and signed into law by the president, or it can be rejected (vetoed). The majority of the time, Congress has the option to pass legislation by overriding the president's veto and making it law. According to the Constitution's list of three qualifications, the President must be at least 35 years old, a citizen of the United States by birth, and have lived in the nation for at least 14 years.

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refer to scenario 15-2. what is vincent's profit on a typical day? a. $2,170 b. $1,350 c. $820 d. $660

Answers

Vincent's profit on a typical day is $820. Hence option (c) is correct.

What does profit mean?

The term profit is the amount of money you have after covering business expenses. Gross, operational, and net profits are hence, the three basic categories of profit. The greatest is gross profit. The business is said to be in the profit if the value left over after expenses are subtracted from revenue is positive, and is in the loss, if the value is negative.

Vincent's total daily income is:

Give:

Passenger                  Price                  Daily demand

Adults                          $18                        70

Children                      $10                        25

Senior citizens            $12                        55

total                                                           150

The total revenue each day = ($18 x 70) + ($10 x 25) + ($12 x 55) = $1,260 + $250 + $660 = $2,170

The total operating costs each day = (150 / 50) x $450 = $1,350

The operating income each day = $2,170 - $1,350 = $820

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The complete question is:

Vincent operates a scenic tour business in Boston. He has one bus that can fit 50 people per tour and each tour lasts 2 hours. His total cost of operating one tour is fixed at $450. Vincent's cost is not reduced if he runs a tour with a partially full bus. While his cost is the same for all tours, Vincent charges each passenger his/her willingness to pay: adults $18 per trip, children $10 per trip, and senior citizens $12 per trip. At those rates, on a typical day Vincent's demand is: Assume that Vincent's customers are always available for the tour; therefore, he can fill his bus for each tour as long as there is sufficient total demand for the day.

Refer to Scenario 15-2. What is Vincent's profit on a typical day?

a. $2,170 b. $1,350 c. $820 d. $660

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