If the required reserve ratio is 10%, actual reserves are $10 million, and currency in circulation is equal to $20 million, M1 w
1 answer:
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<u>Given:</u>
Loan amount = $250000
Interest rate = 5.5%
Interest payment = $2042.71
<u>To find:</u>
Total amount of interest
<u>Solution:</u>
The total number of months in 15 years =
Total monthly payments will be
So, the total pay-backs will be $3,67,687.8
Total interest paid will be as follows,
On plugging-in the values in the above formula we get,
Therefore, the total amount of interest that the borrower will pay over the course of the loan is $1,17,687.80.
Answer: Higher; Comparative advantage
Explanation:
A country or a firm has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodities is lower than the other country or firm.
Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.
If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.
Therefore,
United states's Opportunity cost of producing a pair of shoes =
= 5 apples have to be foregone for producing a pair of shoes
Canada's Opportunity cost of producing a pair of shoes =
= 2 apples have to be foregone for producing a pair of shoes
Hence, Canada has a comparative advantage in producing pairs of shoes because Canada's opportunity cost of producing a pair of shoes is lower than United states opportunity cost.