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Lorico [155]
2 years ago
8

John, who has an inflation adjusted wage, would like to borrow a loan from the Bank of Titon. Suppose the inflation rate is pred

icted to be 8%. In order for the loan payments to be more favorable to John, the interest rate should be:
Business
1 answer:
inna [77]2 years ago
6 0

In order for the loan payments to be more favorable to John, the interest rate should be:6%.

<h3>What is inflation?</h3>

Inflation occur when their is increase in the price of goods and services,

Based on the given scenario if the inflation rate is  8%. The best alternative is for John to receive the interest rate at 6% as this will enable the loan payment to favor him compare to 8% which is higher.

Therefore In order for the loan payments to be more favorable to John, the interest rate should be:6%.

Learn more about inflation here:brainly.com/question/777738

#SPJ1

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Economic models are typically based on the principle that people behave rationally. However, people do not always behave rationa
BartSMP [9]

Answer:

<em>because the existing models have been in place for so long, they are considered untouchable, the equivalent of an economic law.</em>

Explanation:

The rational economic model is even more widely used in economics because it is easier to measure. Although people have irrational behaviors, they are more subjective, which makes the rational model still the most used by the economy, because through it is possible to measure behavior patterns, statistical data and information relevant to the economy.

3 0
4 years ago
Gilmore, Inc., just paid a dividend of $3.05 per share on its stock. The dividends are expected to grow at a constant rate of 5.
Alona [7]

Answer:

intrinsic value: 49.50

value in four years:        $   61.32

value in fourteen years: $ 104.75

Explanation:

we solve using the gordon model:

\frac{divends_1}{return-growth} = Intrinsic \: Value

D0 =  3.05

D1 = 3.05 x ( 1 + 0.055) = 3.21775‬

\frac{3.21775}{0.12 - 0.055} = Intrinsic \: Value

Value: 49.50384615

<u>In the future will grow at the same rate as dividends:</u>

price in four years:         49.50 x (1.055)^4  =  61.32182021

price in fourteen years: 49.50 x (1.055)^14 = 104.7465274

7 0
3 years ago
Advice from most financial advisers states to spend no more than 28% of one's gross monthly income for one's mortgage payment, a
meriva

Answer and Explanation:

The computation is shown below:

a. For the maximum amount that spend each month on mortgage payment is

= Gross annual income ÷ total number of months in a year × mortgage payment percentage

= $39,600 ÷ 12 months × 28%

= $924

b. . For the maximum amount that spend each month on total credit obligatons

= Gross annual income ÷ total number of months in a year × mortgage payment percentage

= $39,600 ÷ 12 months × 36%

= $1,188

c. Now the maximum amount spend for all other debt is

For monthly mortgage

= $924 × 70%

= $646.8

And, for mortgage debt

= $1,188 × 70%

= $831.60

7 0
4 years ago
You need to land in Los Angeles, CA, no later than 11:00 AM to make sure you are on time for an afternoon meeting. Select the ap
Allisa [31]

Select "American Airlines 913" from 06:00 AM departure, 08:48 Am arrival  

<u>Explanation: </u>

You need to arrive 2 to 3 hours in advance to attend the afternoon meeting, because the meeting is at 11:00 a.m.

Time is precious, of course, and it's all a waste of precious resources that sitting around and trying to imagine when the boss may come.  

Employees turn their attention to the person in the corner office as they draw up unofficial laws of an organisation.

When that person is willing to begin on time meetings, meetings should begin on time.

8 0
3 years ago
Select the correct answer.
deff fn [24]

Answer:

income earned from renting out a store in the hotel

Explanation: Make me the brainiest

3 0
3 years ago
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