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3 years ago

、HowTotalRevenueChangesWhenPriceChanges？PleaseusetheElasticityandDemand 订curvetoexplainit.

1 answer:

6 0

If price changes by a larger percentage than quantity demanded (i.e., if demand is price inelastic), total revenue will move in the direction of the price change. ... Demand is unit price elastic, and total revenue remains unchanged. Quantity demanded falls by the same percentage by which price increases.

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Jim has an annual income of $180,000. Jim is looking to buy a house with monthly property taxes of $140 and monthly homeowners i

MariettaO [177]

Answer:

$787,471.02

Explanation:

Given:

Jim's annual income = $180,000

Monthly property taxes = $140

Monthly homeowners insurance = $70

Monthly student loan payments = $178

Maximum front end DTI limit = 28%

Maximum back end DTI limit = 36%

Amortizing period = 30 years = 360 months

annual rate = 4.5% compounded monthly

Now,

Monthly salary = $\frac{\textup{Annual income}}{\textup{12 months}}$

Monthly salary = $\frac{\textup{180,000}}{\textup{12 months}}$

Monthly salary = $15,000

Maximum front end DTI limit

= (Maximum Monthly loan payment + monthly property taxes + monthly homeowner's insurance) ÷ Monthly income

0.28 × $15,000 = Maximum Monthly loan payment + $140 + $70

Maximum Monthly loan payment = $4,200 - $140 - $70

= $3,990

and,

Maximum back end DTI limit =

0.36 × $15,000 = Maximum Monthly loan payment + $140 + $70 + $178

Maximum Monthly loan payment = $5,400 - $140 - $70 - $178

= $5,012

Now,

The monthly payment = minimum of [ $3990, $5012 ]

therefore,

The monthly payment = $3,990

Thus,

The maximum amount of loan = Monthly payment × $[\frac{(1-(1+\frac{r}{k})^{-kn})}{(\frac{r}{k})}]$

here,

k = 12 when compounded monthly

n = 30 years

r = 4.5% = 0.045

The maximum amount of loan = $3,990 × $[\frac{(1-(1+\frac{0.045}{12})^{-12\times30})}{(\frac{0.045}{12})}]$

The maximum amount of loan = $787,471.02

8 0

3 years ago

Amanda is a Certified Public Accountant. She wants to work as an auditor with a firm in the state of California. Which accountin

Hunter-Best [27]

Answer:

Explanation:

Amanda must get herself registered with the state board of accountancy.

To become a member of the certified public accountancy (CPA), one requires a bachelor’s degree in business administration, finance, or accounting.

The state Boards of Accountancy helps to assist state government in the licensing and regulation of the public accounting profession.

For Amanda to work as an auditor in a firm in California she has to register in the state board of accountancy.

6 0

3 years ago

What is price skimming?

Vinil7 [7]

Answer:

a strategy where someone sets a high price at first to attract people who like it a lot enough to buy it at that price but slowly lowering it over time so that even people who arent as desperate to buy it will possibly buy it as well.

7 0

3 years ago

Amber is a strategist for a furniture manufacturer that has a large presence in the United States and Canada. By checking econom

dimulka [17.4K]

Answer:

Explanation:

Based on the scenario being described within the question it can be said that they should both seriously consider globalization because of the falling trade and investment barriers. This is mainly due to everything falling, if they decide to expand globally they can take advantage of these circumstances and fill the void that is currently being opened in these locations.

6 0

3 years ago

In which way do mood disorders differ from schizophrenic disorders

Sav [38]

Answer:

With schizophrenia, it had to do with your mental state, with mood disorders, that deals with the way you feel. Schizophrenia is how you think and how your mental state is.

Hopes this helps

6 0

3 years ago

、HowTotalRevenueChangesWhenPriceChanges？PleaseusetheElasticityandDemand 订curvetoexplainit.​

、HowTotalRevenueChangesWhenPriceChanges？PleaseusetheElasticityandDemand 订curvetoexplainit.