Roger has just opened today a savings account paying 4 percent interest, compounded annually. The savings account will be worth $25,000 in 4 years. He does not plan on putting any more money in this account or taking out any amount from the account.

Pick the correct statement related to Roger's savings from below.

a. Roger will earn the same amount of interest each year for four years.
b. Roger will earn simple interest on his savings every year for four years.
c. Roger could have deposited less money today and still had $25,000 in four years if the account paid a higher rate of interest.
d. Roger has an account currently valued at $25,000.
e. Roger could earn more interest on this account if the interest earnings were withdrawn annually.

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?