Who has the least-cost home ownership and by how much

Assignment Help Econometrics
Reference no: EM13242693

Home, Sweet Home. Suppose Ms. Profligate and Mr. Discipline both purchase identical $185,000 homes in Marietta, GA on January 1, 2012. They both have good credit and qualify for a loan with no down payment and 4.8% financing. Profligate take a 15 year loan whereas Discipline take a 30 year loan and reinvests the monthly difference in payments in a the S&P Index fund paying 8.2% per year. Compare their position after 10 years (payment 120). Who has the least-cost home ownership and by how much?

Reference no: EM13242693

Questions Cloud

What is elasticity of demand at the market-clearing price : a.) what is the market-clearing price b.)how much will he produce c.) what is the net profits d.) what is the elasticity of demand at the market-clearing price
Find the direction of the net force acts on the sailboat : A 380-kg sailboat has an acceleration of 0.636 m/s2 at an angle of 65.5 ° north of east. Find the direction of the net force that acts on the sailboat
What is the composition of the average fans spending : For hotdogs, the average fan's MU for units 1, 2, and 3 is 150, 125, and 80 utils. For soda, MU for units 1, 2, and 3 is 130, 100 and 60. For nachos, it's 140, 120 and 100. The average fan spends $25 per night on concessions. Hotdogs cost $5, nach..
Calculate the velocity of the fish relative to the water : An eagle is flying horizontally at a speed of 3.00 m/s when the fish in her talons wiggles loose and falls into the lake 5.00 m, Calculate the velocity of the fish relative to the water when it hits the water
Who has the least-cost home ownership and by how much : Home, Sweet Home. Suppose Ms. Profligate and Mr. Discipline both purchase identical $185,000 homes in Marietta, GA on January 1, 2012. They both have good credit and qualify for a loan with no down payment and 4.8% financing.
What power must a motor have to perform this task : A skier of mass 73 kg is pulled up a slope by a motor-driven cable, What power (expressed in hp) must a motor have to perform this task
What is the cross-price elasticity of burgers with chicken : Fast Food. Wendy's recently changed the price of their classic Single burger from $1.39 to $1.49. Sales went from 497/day to 366/day. Across the street, the Bojangles chicken sandwich maintained its price of $1.99
River marks the westward limit of bantu expansion : Which river marks the westward limit of Bantu expansion? Which areas were sites of early iron production by Bantu peoples? Which large river system lay across the center of the main route of Bantu expansion?
Find the force constant of the spring : In a control system, an accelerometer consists of a 4.99-g object sliding on a calibrated horizontal rail, Find the force constant of the spring required for the calibration to be correct

Reviews

Write a Review

Econometrics Questions & Answers

  How to have the necessary funds to pay off the loan

You borrowed $20,000 from your uncle to finance your college education. Your uncle is very flexible in your repayment plan, but he will charge an 8% interest compounded annually for any unpaid balance.

  What is opportunity cost of producing additional silk roses

Bella can produce either a combination of 60 silk roses and 80 silk leaves or a combination of 70 silk roses and 55 silk leaves. If she now produces 60 silk rose 80 silk leaves, what is the opportunity cost of producing additional 10 silk roses

  Describe how each of the 4 factors contributed to elasticity

Choose a product you have purchased in the past month from a clothing or shoe store. Describe how each of the 4 factors contributed to the elasticity of the good. Is the product considered elastic, inelastic, or unitary elastic

  How much firm will produce in a perfectly competitive market

A firm in a perfectly competitive market will produce 0 output in the short run if the price in below $20 but will produce if the price is above $20. The smallest quantity they will produce in the short run is 6. The minimum of ATC is $447.75

  What is the approximate value of before-tax marr

A widget production machine can be purchased and installed for $100,000. It is in the seven-year GDS property class, and is expected to be kept in service for eight years. It is believed that $7,500 can be obtained.

  Who should specialize in studying and who in working

Suppose a second individual has the following tradeoffs between income and grades: TotalHours/Hours Studying/GPA/Hours Working/Income 60 50 4.0 10 $60 60 40 3.0 20 $120 60 20 2.0 40 $240 60 10 1.0 50 $300 60 0 0.0 60 $360

  What is the slope of a given short-run isoprofit curve

By analogy with household indifference curves, a short run isoprofit curve for a firm can be defined as the set of all combinations of wage rate and labor hired that yield a positive profit, so that for the short-run profit function f = P.f(L,K') ..

  Explain how the values for marginal physical product

explain how the values (how to calculate them) for Marginal Physical Product and Marginal Revenue Product First Column: Number of workers Second Column: Total output Third Column: Marginal Physical Product Fourth Column: Marginal Revenue Product

  Determine the 4 equal annual withdrawals

Determine the present worth of 5 annual deposits of $1,200 at the end of years 1 through 5, followed by 4 equal annual withdrawals of $700 at the end of years 4 through 7. Note that both years 4 and 7 will have a depsoit and a withdrawal. Interest..

  What is the growth rate of real gdp per capita

Suppose an economy's real GDP is $38,000 in year 1 and $41,200 in year 2. What is the growth rate of its real GDP (Instructions: Round your answer to two decimal places.) The growth rate of the economy's real GDP = % Assume that population is 100 in ..

  How might you construct measure of the change in price level

Define inflation. Assume that you live in a simple economy in which only three goods are produced and traded: fish, fruit, and meat. Suppose that on January 1, 2007, fish sold for $2.50 per pound, meat was $3.00 per pound, and fruit was $1.50 per ..

  What is the marginal cost of producing the 10th car

Suppose the cost of producing q cars is given by c(q) = 7500 + 2000q-10q^2 a. What is the variable cost of producing 10 cars b. What is the marginal cost of producing the 10th car

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