Problem 5.24 find the present value of $4,900 under each of the following rates and periods: (use 365 days for calculation. if you solve this problem with algebra round intermediate calculations to 4 decimal places, in all cases round your final answer to the nearest penny.) a. 8.9 percent compounded monthly for five years. present value $ b. 6.6 percent compounded quarterly for eight years. present value $ c. 4.3 percent compounded daily for four years. present value $ d. 5.7 percent compounded continuously for three years. present value $

You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?