1. Compound interest is:
a. the price of using someone else's money.
b. the original amount of money deposited or invested.
c. the part of a person's income that is not spent or used to pay taxes.
d. interest computed on the sum of the original principal and accrued interest.
e. a method to estimate the number of years it will take for an investment or debt to double in value.

You are a newspaper publisher. you are in the middle of a one-year rental contract for your factory that requires you to pay $500,000 per month, and you have contractual labor obligations of $1 million per month that you can't get out of. you also have a marginal printing cost of $.25 per paper as well as a marginal delivery cost of $.10 per paper. if sales fall by 20 percent from 1 million papers per month to 800,000 papers per month, what happens to the afc per paper?