Decorators working in new-home construction helps clients select

Julie Brown is a single woman in her late 20s. She is renting an apartment in the fashionable part of town for $1,000 a month. A

Yakvenalex [24]

Answer:

a. Julie should continue live in her own apartment.

b. She should then purchase the condo

c. Home maintenance cost and tax benefit.

d. She should live in her own apartment and rent the condo after purchase.

Explanation:

Buying cost of condo $175,000

Loan interest amount $8,400 [ $175,000 * 80% * 6%]

Insurance premium $10 [560 - 550]

Property taxes $1,000

Maintenance expense $875 [$175,000 * 0.5%]

Total additional cost per year $10,280

If Julie plans to buy the condo she will have to incur additional cost of $10,280 per annum.

b. If the price of condo increases by 3.5% per year then she should consider buying the condo.

5 0

4 years ago

You invest $100 in a risky asset with an expected rate of return of 0.21 and a standard deviation of 0.21 and a T-bill with a ra

WARRIOR [948]

Answer:

-0.4242

Explanation:

Ra = 0.21 or 21%

Rf = 0.045 or 4.5%

Rp = 0.28 or 28%

Expected return on a portfolio is weighted average return of its assets :

Rp = Rf*(1-w) + Ra*w

28 = 4.5*(1-w) + 21*w

28 = 4.5 - 4.5w + 21w

28 - 4.5 = 21w - 4.5w

21w - 4.5w = 28 - 4.5

16.5w = 23.5

w = 23.5/16.5

w = 1.4242

Hence, weight of risky asset = 1.4242

So, Weight of risk free asset = 1 - 1.4242

Weight of risk free asset = -0.4242

5 0

3 years ago

Which of the following are normally recorded on a registration card?

elena55 [62]

DONT OPEN THAT LINK ITS A HACKER IT CAN HAVK YOUR PHONE

5 0

3 years ago

Ruth is a mother of two, loves to travel, is a member of a book club, enjoys jogging, likes to wear the latest fashions, and is

Margaret [11]

Answer:

(A) A component lifestyle.

Explanation:

Component lifestyle:-It is choosing goods and services that fulfills one's various needs and interests rather than following a single, traditional stereotype.

So according to the question Ruth is a person having various interests and also a police officer by profession.So she has very diverse needs and interest and they affects her choice of goods and services because she wants goods and services that meet's her diverse needs.So her lifestyle is component.

5 0

4 years ago

Wiley incorporates his business as Wiley Wire Corporation in Texas. He and his group of shareholders intend to make a profit fro

ruslelena [56]

Answer:

d. a private corporation.

Explanation:

A private corporation is a limited company that is owned by a few numbers of shareholders. The shares of a private corporation are not publicly traded in the securities exchanges, neither are they issued through an initial public offer. Ownership of a private corporation is transferable but is restricted to the founders who, in most cases, are family members, close friends, or associates.

Wiley and the shareholders have a private corporation. Formation of a private corporation is through incorporation, as is the case of Wiley wire corporation. Private corporations are established with a profit motive. Ownership of Wiley wire corporation will be restricted to Wiley and the other shareholders.

4 0

3 years ago