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Debbie McAdams paid 8% interest on a $12,500 loan balance. Jan Burke paid $5,000 interest on a $62,500 loan base on 1 year (a) what was the amount of interest paid by Debbie?($1,000) (b) What was the interest rate paid by Jan? (8%) (c) Debbie and Jan are both in the 28th tax bracket. Since the interest is deductible, how much would Debbie and Jan each save in taxes? ($1,000)
Optimization with 2nd order conditions and identifying the properties of functions: 1. Solve the following optimization problems Check 2nd order conditions to confirm that your solution is a maximum. Check if the objective function is concave, convex..
A man buys a corporate bond from a bond brokerage house for $925. The bond has a face value of $1000 and pays 4% of its face value each year. I f the bond will be paid off in at the end of 10 years , what rate of return will the man receive?
Explain how might you make profits by purchases or sales of bonds now,with the intention to sell in a few months' time.
Growth without diminishing productivity of capital suppose that the production function is Y=AK. What is the condition for the growth rate of capital per worker, ?what does the s*(y/k) curve look like? What are the growth rates of capital and output ..
If the entry barrier is removed consumers will be better off because consumers will enjoy greater consumer surplus. Explain.
The federal debt keeps rising every year and has changed from a moral responsibility to a tool used in economic policy. Government spending is used for everything from Medicare and Medicaid to buying books for underprivileged schools.
Illustrate what is probability first two electric toothbrushes sold will be returned to drugstore because y are defective. Explain how all work, formula and answer.
Focus and write an International Business and Business Related Issue related for an International Business, Country or a commodity. A international proposal paper or business plan is also required.
q1. what is meant by average propensity to consume? suppose that 1000 out of 10000 disposable income is saved. what is
The price level in the economy in 2007 and 2008 rose from 100 to 105. In 2008 and 2009, the price level increase from 105 to 110.25. How does the short-run Phillips curve forecast the unemployment rate will change as a result?
Suppose you bought a concert ticket from Ticketmaster for $50, but when you got to the concert scalpers (individuals who re-sell tickets at the event) were selling tickets in the same seating area as yours for $25. What is probably true?
Illustrate what is the probability that the defense defends the right hand side. Explain in words what the expected outcome will be.
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