Immediately take full-time job in family construction firm

Assignment Help Business Economics
Reference no: EM131169309

Joe expects to graduate from WSU in December 2019 and immediately take a full-time job in his family's construction firm. At that time, Joe could buy a new car using a loan requiring payments of $490 a month for six years, with the first payment being made on February 1,2020, and the last payment being made on January 1, 2026. The nominal annual interest rate will be %, cCompounded monthly. Being forward thinking, Joe instead wants to buy the car for cash in January 2020, right after he graduates. With that in mind, he started saving $400/month with the first deposit on February 1, 2015. The savings account pays 9% nominal interest Compounded monthly. The last deposit will be made on January 1, 2020. Will Joe have saved up enough money to purchase the car for cash in January 2020?

Reference no: EM131169309

Questions Cloud

Effect of introducing tax rate on consumer budget constraint : In the consumption savings model, assume that lump-sum taxes are zero and the utility function is given by U(c, c') = log c + β log c'. Suppose the government taxes on interest earnings i.e. borrowers face interest rate r while lenders face interest ..
Determine the effects of this on current aggregate output : Suppose that there is an increased confidence of the economy, shared among the economic agents: the representative consumer becomes optimistic of the economic performance and therefore, is willing to consume more, given his/her own income. determine ..
When the real economy expands-demand for money expands : When the real economy expands (Y rises), the demand for money expands. As a result, households hold more cash and the supply of money expands. Inflation, a rise in the price level, causes the demand for money to decline. Because inflation causes mone..
Calculate the profit maximizing output for industry leader : The automobile market has been used as an example of a Stackelberg oligopoly where one firm is the industry leader and the other firms will follow that lead. Assume the following equations were estimated for the automobile industry. Calculate the pro..
Immediately take full-time job in family construction firm : Joe expects to graduate from WSU in December 2019 and immediately take a full-time job in his family's construction firm. At that time, Joe could buy a new car using a loan requiring payments of $490 a month for six years, with the first payment bein..
Appreciating against other currencies : Assume that the US dollar has been appreciating against other currencies. Please explain how this higher value of US dollar would affect the following firms (in a positive or negative way).
Affect the cost for health insurance companies : When more people buy the more expensive brand name drugs rather than the cheaper generic drugs, how does this affect the cost for health insurance companies? Hint: We are now looking at the health insurance market, not the health care market.
Exports and imports and net exports : What is happening to the US exports and imports and net exports in each of the following situations?
Aggregate demand and short-run aggregate supply : The following events have their initial impact on which of the following:aggregate demand, short-run aggregate supply, long-run aggregate supply, or bothshort-run and long-run aggregate supply? Do the curves shift to the right or left? Explain AND su..

Reviews

Write a Review

 

Business Economics Questions & Answers

  Construct a cash flow diagram to find the present worth

Determine the present worth of a geometric gradient series with a cash flow - List the essential elements involved in decision making in engineering economic analysis.

  Industry with an oligopolistic structure

Illustrate what criteria are you using to classify this industry as an example of oligopoly.

  Prepare the income statement and retained earnings statement

Prepare the income statement and retained earnings statements for the year and the classified balance sheet at August 31.

  How can we save social security

It is a common belief that social security benefits will run out in the near future. How can we save social security?

  About transfer payments with regard to computing gdp

Which of the following statements are true about transfer payments with regard to computing GDP? Check all that apply.

  An increase in nation interest rate reduces

Holding other things constant, an appreciation of a nation’s currency causes. Holding other things constant, an increase in a nation’s interest rate reduces.

  Writes a summary of each given article

The student then writes a summary of each article, followed by a comment on each one. The summary should demonstrate that the student understood the article as written, without any evaluation or opinion whatsoever.

  semi annually through company-sponsored saving plan

Ryan expects to deposit $1,000 now, $3,000 four years from now, and $1,500 six years from now in an account that is earning 12% per year compounded semi annually through a company-sponsored saving plan. What amount can he withdraw ten years from now?

  Ratio of return relative to net amount of money he invested

An employee contributes 9% of his salary to his 401(k) plan and the employer matches with 40 percent of his first 6% of the employee's salary. The employee earns $90,000 and is in a 28% tax bracket. If the employee earns 2.5% on the plan investments,..

  Change in compensation is reason for the increased profits

Recently, the owner of a Trader Joe’s franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $65,000 and her store made $130,000 in profits (not counting payment to her top manager). Assuming the ch..

  Online dating service

Jane uses an online dating service. For each of the following activities say whether Jane is screening or signaling.

  In a sample from a previous fund raising campaign

A local church parish wants to raise money to add to their campus. In a sample from a previous fund raising campaign, the parish found that of the 136 people in the sample they contacted, that 67 actually contributed money. When testing (at the 5% le..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd