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You just received a car loan for $20,000. The terms of the loan are for 5 years at 6% annual interest, compounded monthly.
a) What is your monthly payment?
b) For the first month, how much of this payment goes to principal?
c) For the first month, how much of this payment goes to interest?
d) How much interest is paid in the second month?
To encourage inner-city youths to spend more time playing sports, the government introduces a super income tax of 10% on professional basketball players and plans to use the revenue to improve inner-city sports facilities. In an attempt to raise more..
A medical device company has a monopoly on a certain class of cardiac implants. Demand for the implants is given by P=28000-5Q and marginal revenue is given by MR=28000-10Q. The total fixed costs for the implants division is 50000 and the marginal co..
Using appropriate diagrams and notations,carefully explain the relationship b/n elasticity, total revenue and marginal revenue. 2,discuss the uses of elasticity of demand.
Using the Lagrangean Multiplier method, determine how should the hardwood be allocated between the two lines of product so that total profit can be maximized. Also calculate the optimal amounts of Y and Z and total profit from each product line.
What would the annual percentage rate be if the city plans to make an interest payment of $2 million - The City of Phoenix plans to buy five additional mass transit cars for $15 million, and pay off its loan in 10 years.
Explain how the Fed's use of its three tools of monetary policy affect supply and demand in the market for reserves and the equilibrium federal funds interest rate.
Using the four scenarios, discuss each and choose periods when each scenario has occurred in the U. S. or other countries: a. higher interest rates, more capital invested b. lower interest rates, less capital invested c. lower interest rates, more ca..
Illustrate what cost should each industry charge if it wants to maximize its profit. Why are costs and output of industries 1 and 2 same however different for industry 3.
If the composite good costs $1, what is the price of good x in each of the three budget lines? Draw the income and substitution effects of a price decrease from the most expensive to the second most expensive on the figure above. Draw the income and ..
Why is monetary policy chosen over fiscal policy as the preferred tool for stabilization policy? What does the government gain from controlling monetary policy? Why would they choose to delegate responsibility for monetary policy to an independent ce..
Suppose a union that represents some but not all of the employees in an industry is considering a strong push for increased pay for their members during the upcoming contract negotiations. However, they are concerned about the possibility that the co..
Theodore Levitt has argued that the world is flat and that due to the advent of modern communications and transportation technologies, consumer tastes and preferences are becoming global. However, this position is considered extreme by many business ..
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