Saffexo, a company that manufactures sports goods, hikes the prices of its entire range of athletic shoes. however, the company does not experience a fall in the sales of its shoes following the hike as the consumers continue to buy them. the information given in the scenario indicates that saffexo has a good
a. brand valuationb. product consistencyc. brand equityd. product mix

The correct answer is "C. brand equity".

Explanation: The information given in the scenario indicates that Saffexo has a good brand equity.

Because despite an increase in the price of their products people continue to opt for them, this means that for the quality of the product and the value of the brand consumers are willing to pay more for the product.

1. First blank: $6,436.982. Second blank: $1,677.153. Option b. $856,769.40

Explanation:

The equation to calculate the monthly payments of a loan is:

             

Where,

   L is the amount of the loan.    i is the interest rate per period and is calculated dividing the yearly percent rate by 100 and by the number of periods in a year = 0.09/12 = 0.0075    n is the total number of periods and is calculated as the product of the number of periods in a year times the number of years (different for each of the options given)

Quesiton 1. Mortgage payment for a stardard 30-year mortgage.

n = 30

           

$6,436.98 ← answer

Question 2. Difference in the monthly payment

         

Difference in the monthly payment of the 15-year mortgage and 30-year mortgage will be $8,114.13 - $6,436.98 = $1,677.15 ← answer

Question 3. How much more interest will you pay over the life of the loan if you take out a 30-year mortage instead of a 15-year mortgage?

i. Interest over the life of the 30-years mortgage

Interest = Total payment - loan amountTotal payment = $6436.9 × 30 × 12 = $2,317,312.80Interest = $2,317,312.80 - $800,000.00 = $1,517,312.80

ii) Interest over the life of the 15-years mortgage

Total payment = $8,114.13 × 15 × 12 = $1,460,543.40Interest = $1,460,543.40 - $800,000,.00 = $660,543.40

iii) Difference = $1,517,312.80 - $660,543.40 = $856,769.40

That is the option b. $856,769.40 ← answer