Answer:
$443,091.5
Explanation:
Given that,
Amount of loan, present value = $185,000
Annual rate of interest, r = 7% ÷ 12
= 0.00583
Time period = 30 years
Therefore,
Monthly payments:
![=\frac{r\times PV}{[1 - (1+r)^{-n}]}](https://tex.z-dn.net/?f=%3D%5Cfrac%7Br%5Ctimes%20PV%7D%7B%5B1%20-%20%281%2Br%29%5E%7B-n%7D%5D%7D)
![=\frac{0.00583\times 185,000}{[1 - (1+0.00583)^{-30\times12}]}](https://tex.z-dn.net/?f=%3D%5Cfrac%7B0.00583%5Ctimes%20185%2C000%7D%7B%5B1%20-%20%281%2B0.00583%29%5E%7B-30%5Ctimes12%7D%5D%7D)
![=\frac{1,078.55}{[1 - (1.00583)^{-360}]}](https://tex.z-dn.net/?f=%3D%5Cfrac%7B1%2C078.55%7D%7B%5B1%20-%20%281.00583%29%5E%7B-360%7D%5D%7D)
= 1230.81
Total (principle and interest) will be paid over the life:
= Monthly payments × 360
= $1,230.81 × 360
= $443,091.5
Answer:
Market price: 28.90
Explanation:
We will calculate the stock price using the gordon dividend grow model:
D1 = 1.25
grow = g = 6% = 6/100 = 0.06
return= for the return, based on the information give, we will calculate it using the CAPM model:
risk free = 0.04
premium market=(market rate - risk free)= 0.055
beta(non diversifiable risk)= 1.15
Ke =cost of capital = return in the dividend grow formula = 0.10325
Now, we calculate the stock price:
Stock: 28.9017341
Market price: 28.90
Answer:
This is the complete question with options
Alex sees that his neighbors' lawns all need mowing. He offers to provide the service in exchange for a wage of $20 per hour. Some neighbors accept Alex's offer and others refuse. Economists would describe Alex's behavior as
A. rational self-interest because he is attempting to increase his own income by identifying and satisfying someone else's wants.
B. greedy because he is asking for a high wage that some of his neighbors can't afford to pay.
C. selfish because he is asking for a wage that is higher than others might charge.
D. irrational because some neighbors refused his offer.
The answer is A . rational self-interest because he is attempting to increase his own income by identifying and satisfying someone else's wants.
Explanation:
Alex is regarded as a rational self - interest individual because his decision focuses on his own monetary benefits which also influences the environment in which he is, in the sense that he is helping his neighbor mow their lawns.