### Determine whether it is better to rent or own

Assignment Help Econometrics
##### Reference no: EM13187644

Opportunity cost Renting:
You currently pay \$10,000 per year in a rent to a landlord for a \$100,000 house, which you are considering purchasing. you can wualify for a loan of \$80,000 at 9% if you put \$20,000 down on the house. To raise money for your own downpayment, you would have to liquidate stock earning a 15% return. Neglect other concerns, like costing costs, capital gains, and tax consequences of owning, and determine whether it is better to rent or own.

### Write a Review

#### Explanation of multiple regression

A company's marketing dept. obtained information from 10 of the firm's outlets. The information consists of the qty. and price of the products sold at each outlet from the distribution center.

#### Cost of holding inventory

To ensure that correct size of heart valve is available for heart surgery, Heart Plus, maker of valves employs salespeople to place and maintain inventories at hospitals in its market.

#### Discuss the current us federal budget

Discuss the current United States Federal Budget and what are the major categories of expenditures? What has changed since 2005? Explain your reasoning.

#### How to increase profit in fast food restaurant

Imagine you are a consultant hired to give advice to a fast food restaurant which is faced with employees asking for a 25% increase in pay. In order to give good advice, you need more information. Create three to four (3-4) questions that you woul..

#### Analyzing productivity

I have a time series set of data of workers in motor vehicle industry from 1972-2001 as well as average weekly hours of workers in motor vehicle industry

#### Is pizzo''s firm the dominant firm in the industry

James Pizzo is the president of a firm that is the industry price leader; that is, it sets the price and the other firms sell all they want at that price. In other words, the other firms act as perfect competitors. The demand curve for this indust..

#### Calculate the correct beta values

When watching television after dinner, you suffer memory loss. You can not remember what demonstrate you just watched or what you ate for dinner.

#### What is the value of net exports

Assume that gross private domestic investment is \$800 billion and the government (state, local, and federal combined) is currently running a \$400 billion deficit. If households and businesses are saving \$1,000 billion, what is the value of net exp..

#### What is the effective interest rate made in investment

In January of 2007 Mary bought 100 stocks of Apple Inc for \$55 each. this stock paid an average dividend of \$4.50 per stock until the end of each year until mary sold all the stocks in December 2012 for \$75.50 each. What is the effective interes..

#### How many units of saddles produced for sale

Country A produces two goods, elephants and saddles. In the year 2006, the 100 units of elephants produced sold for \$2,500 per unit and the 30 units of saddles produced sold for \$200 per unit. In 2007, the 120 units of elephants produced sold for ..

#### Derive the equilibrium in quantities

where a > 1. In addition assume that the firms target own profit maximization, compete (simultaneously) in quantities and have marginal costs equal to c1 = c2 = c. Assume that 1 > c > or equal to 0. Describing the necessary mathematical steps, and..

#### What are the burdens of the public debt

Many people advocate taxing "the rich" to alleviate the debt problem but the truth is that taxes will have to be increased on all income earners. What macroeconomic impacts would you expect to see if taxes are raised "across the board"?