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SCORPION-xisa [38]
3 years ago
6

Alex Guadet of Nashville, Tennessee, has been renting a two-bedroom house for several years. He pays $900 per month in rent for

the home and $300 per year in property and liability insurance. The owner of the house wants to sell it, and Alex is considering making an offer. The owner wants $160,000 for the property, but Alex thinks he could get the house for $150,000 and use his $25,000 in 3 percent certificates of deposit that are ready to mature for the down payment. Alex has talked to his banker and could get a 5 percent mortgage loan for 25 years to finance the remainder of the purchase price. The banker advised Alex that he would reduce his debt principal by $1,700 during the first year of the loan. Property taxes on the house are $1,400 per year. Alex estimates that he would need to upgrade his property and liability insurance to $1,200 per year and would incur about $3,000 in costs the first year for maintenance and improvements. Property values are increasing at about 3 percent per year in the neighborhood. Alex will have to pay $50 a month for private mortgage insurance. He is in the 25 percent marginal tax bracket.
(a) Use Table 9-4 on page 285 to calculate the monthly mortgage payment for the mortgage loan that Alex would need.

(b) How much interest would Alex pay during the first year of the loan?

(c) Use the Run the Numbers worksheet, "Should You Buy or Rent?" on page 264 to determine whether Alex would be better off buying or renting.
Business
1 answer:
gogolik [260]3 years ago
4 0

Answer:

A - C + D = B

Explanation:

im big brain

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Bruce and lou, who sit next to each other, distract each other in the classroom. the teacher has tried rewarding them for approp
krek1111 [17]
It is an example of manipulation the antecedent stimulus. It is a way having desirable behavior to be done accordingly and in an appropriate way in order for effect to increase. It could be seen above as when the teachers applied of having changes to their seat, it is likely that they would rarely distract the class. It is an example of having the increase the odds so that the behavior could be done accordingly.
5 0
3 years ago
Which of the following statements is true?-direct costs can easily be traced to a cost object; indirect costs cannot be-both dir
Andru [333]

Answer: Statement A

Explanation: Direct cost are those costs which are variable in nature and can be allocated to the total units of output produced, these are easily traceable. Examples - direct material, direct labor and piece rate wages etc.

Indirect costs are those cost which cannot be allocated to the number of units produced on individual basis unlike direct cost these costs can be either fixed or variable in nature. Examples - rent expenses, administrative expenses.

.

From the above explanation we can conclude that statement A is correct.

5 0
3 years ago
Classify each characteristic as relating to a fixed exchange rate regime or a flexible, or floating, exchange rate regime.a. sig
marshall27 [118]

Answer:

(A) Fixed exchange rate regime

(B) Fixed exchange rate

(C) Flexible exchange rate

(D) Flexible exchange rate

Explanation:

(A) A fixed exchange rate regime signals a commitment not to engage in inflationary policies. NOTE: Inflationary policies are a type of monetary policies (the type used to pump money into the economy). See answer (D).

(B) A fixed exchange rate regime provides certainty about the value of a currency, for example, when the exchange rate between Philippine Pesos and Arab Emirate Dollars is fixed at 10PHP - 1AED, traders in this currency will be certain that at any planning time in business, investment or consumption, 10 PHP will be equal to 1 AED.

(C) Flexible exchange rate distorts incentives for importing and exporting goods and services. What are these incentives? On the government side, it is either the revenue that government makes from import tariffs and duties OR the subsidy that government pays on exported goods. On the importer/exporter side, it is the custom duties paid by importers on imported goods AND the subsidies enjoyed by exporters on exported products. A flexible exchange rate distorts or fluctuates these incentives.

(D) Flexible exchange rate enables policy makers to engage in monetary policy. Now, monetary policy is a tool used by ministers of finance or policy makers in every country; to regulate (increase or reduce or bring back to normal) spending and investment. If the exchange rate between or among countries were fixed, monetary policies would have limited application or usefulness when implemented. A flexible exchange rate encourages and enables engagement in or use of monetary policies.

8 0
3 years ago
In monopolistically competitive markets, resources are: Group of answer choices overallocated because long-run equilibrium occur
sasho [114]

Answer: underallocated because long-run equilibrium occurs where price exceeds marginal cost.

Explanation:

Monopolistic competition occurs when there are many firms that are producing products that are differentiated. It should also be noted that one typical characteristics of a monopolistic competition is a large number of firms coupled with low entry barriers.

It should be noted that in monopolistically competitive markets, resources are underallocated because long-run equilibrium occurs where price exceeds marginal cost..

3 0
3 years ago
g The effect on revenue due to a marginal increase in the input is called the marginal revenue product. Match the statements bel
morpeh [17]

Answer:

Statement true for Imperfect Competition Markets

Explanation:

Marginal Revenue Product is additional revenue due to hiring of additional input, it is product of marginal product & marginal revenue = MP x MR

Value Marginal Product is money value of additional production with additional input, product of marginal product (MP) & price (AR), = MP x AR

Input demand curves are derived demand curves, derived from demand of final goods. In perfect competition, demand is perfectly inelastic & horizontal, AR = MR, so MRP = VMP in this case. In imperfect competition market (oligopoly, monopoly etc) - MR < AR, so MRP < VMP in this case.

5 0
3 years ago
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