Question

In the case files section, four people pay a different price for the same digital music player. Why do the prices they paid differ? Explain the factors that affected each person’s ultimate cost for the music player.

Answer 1

The music player was $350. Kevin paid $360.28 using his credit card with a 12% annual percentage rate. Kevin manages his money well, so to pay his debt off in five months he made $75 monthly payments, and paid $10.28 in interest in addition to the $350. Emma paid $714.86 using her credit card with a 24% annual percentage rate due to frequent cash advances. She doesn't manage her money well, and wasn't consistent with meeting the monthly minimum payment. Emma had to pay off numerous late fees that were $39 each, and paid off the music player in 62 months. Maria paid $350.00 using her credit card with a 17% annual percentage rate. With the $350 previously saved up in a savings account, she paid off the debt during the grace period and avoided any interest or other fees. Lastly, Byron paid $514.24 using a credit card with a 19% annual percentage rate. He paid off his debt in 52 months, paying the minimum of $10 each month, which resulted in over $160 in interest. Maria was smart to think ahead, Kevin also made the best use of his credit card, while Emma managed her money very poorly.

Step-by-step explanation:

this is what i did for flvs

Answer 2

This difference in the various costs can be explained by a few factors. One of those is the location where the item was bought. For example, if the buyers leave in different countries, the costs involved will hardly be the same. It's usually cheaper where the product is made because there's no or little logistics costs involved. Still in relation to the location, the fiscal policy on foreign products can significantly affect the price of the item. Another consideration is the acquisition cost of and margin on the item by the retailer. These can significantly affect the ultimate costs for the user.