When you make consumer decision based on opportunity cost you are engaging in

After deciding to buy a new car, you can either lease the car or purchase it on a three-year loan. The car you wish to buy costs

elena55 [62]

Answer:

It would be better to buy the car.

Nominal 26,446.81 (break even resale price)

Explanation:

We solve the present value of the salvage value at 6% APR

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $28,000.0000

time 36.00

rate 0.00500

$\frac{28000}{(1 + 0.005)^{36} } = PV$

PV 23,398.0577

Net present worth:

23,398.06 - 43,000 = 19,601.94

Lease option

PV of the monthly payment:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 505.00

time 36

rate 0.005

$505 \times \frac{1-(1+0.005)^{-36} }{0.005} = PV\\$

PV $16,599.8632

plus the 4,300 downpayment

present worth: -20.899,86‬

As the option from the purcahse gives a lower present worth it is preferable over the option to lease the vehicle

X - 43,000 = -20,899.86

X = 22,100.14

We have to look at which resale price the present value is equal to 22,100.14

$PV \: (1+ r)^{time} = Nominal$

Principal 22,100.14

time 36.00

rate 0.00500

$22100.14 \: (1+ 0.005)^{36} = Nominal$

Nominal 26,446.81

7 0

3 years ago

Indicate whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbindin

tamaranim1 [39]

Answer:

A price ceiling is a bar on the legal maximum price a commodity can be sold for while a price floor is the least legal price a commodity can go for.

The price ceiling is always greater than the price floor in this case it is not so, hence the price floor is not binding to the price ceiling.

the statements below is analyzed under price ceiling and price floor according to whether it is binding or nonbinding.

Explanation:

1. Due to new regulations, donut shops that would like to pay better wages in order to hire more workers are prohibited from doing so.

Statement one is neither a price ceiling nor a price floor and it is nonbinding

2. The government has instituted a legal minimum price of $1.80 each for donuts.

Statement two is a price floor and it is binding.

3. The government prohibits donut shops from selling donuts for more than $1.10 each.

Statement three is a price ceiling and it is binding.

3 0

3 years ago

Changes in tariffs and quotas are

morpeh [17]

Answer:

government actions that reduce competition from international firms.

Explanation:

5 0

3 years ago

Read 2 more answers

Question 2 (2 points)

astraxan [27]

Answer: being goal oriented

Explanation: A goal oriented individual may be referred to an individual with a strong aim and focus who will give his or her very best in other to achieve or attain his intended purpose or aim. A goal oriented individual will defy obstructions capable of hindering or standing in between her and her goal. Attaining one's desire or purpose requires very strong motivation which keeps one going in the face of tribulation or temptation and a strong organizational skill useful for attaining task specific needs at a specific time.

3 0

3 years ago

How many different types of dog are there

Juliette [100K]

there are more than one kind of dog breed

7 0

4 years ago