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Jay Welchsler agrees to purchase a car from a local car dealer, the Con Car Co. The purchase price is $15,000. Jay has the cash to pay the entire amount and wants to do so. Con's sales manager uses the following argument to convince him to finance the car: "All we require is a down payment of $3000. Then you can borrow $12,000 from our finance company at 12 percent. You will make monthly payments of $266.93 for 5 years (60 months), a total of $16,015.80. If you do that, you get to keep your $12000. Now suppose you keep this money in a money market account that pays you 8 percent compounded quarterly. In 5 years, the $12,000 will grow to $17,831.40. That means that you will be better off by $1,815.60 than if you pay the $12,000 cash. Assume all the numbers are correct. Does the offer sound too good to be true? Why?
suppose that u.s. citizens start saving more. what does this imply about the supply of loanable funds and the
The rule for maximizing net revenue
amazons autobot recommended a book to an economist titled quality maintenance zero defects through equipment
As a result of the situation above what will happen to the unemployment rate,Suppose the government increases the minimum wage, substantially increasing firms labor costs.As a result of the situation above what will happen to inflation,As a result of..
Suppose you were a store manager and wanted to increase total revenue for the store by lowering the price of a good. What type of elasticity would have to exist in order for you to be successful
spreadsheet 2. an individual is considering two investment projects. project a will return a zero profit if conditions
explain why zoning laws which allow certain land uses only in specific locations might be justified in dealing with a
Presume the economy begins in steady state. By what proportion does per capita GDP change in the long run in response to each of the following changes?
1. roshima is researching universities where she could study for her mba degree. she is considering 3 major attributes
An individual purchases a dozen eggs and must take them home. Although making trips home is costless, there is a 50 percent chance that all of the eggs carried on any one trip will be broken during the trip. The individual considers two strategies: (..
Suppose that in 1984 the total output in a single-good economy was 10,000 buckets of chicken and the price of each bucket of chicken was $10. In 2005 the price per bucket of chicken was $20 and 25,000 buckets were produced.
Suppose you have 10 indivduals with vales ($1, $2, $3, $4, $5, $6, $7, $8, $9, $10. . our marginal cost of production is $2.50. What is the profit-maximizing price?
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