True or False: According to economic theory, because coupons are free, people who do not clip coupons are behaving irrationally.

Your friends suggest that you take a 15-year mortgage, because a 30-year mortgage is too long and you will pay a lot of money on

dimaraw [331]

Answer and Explanation:

The computation is shown below:

As we know that

Monthly payment of a loan is given by

P = L [r(1 + r)^n] ÷ [(1 + r)^n - 1]

where,

P = Monthly payment = ?

r = Interst rate = 0.1 ÷ 12 = 0.00833

n = Term = 15 × 12 = 180

L = Loan amount = 900000

Now

P = $900,000 [0.00833(1 + 0.00833)^180] ÷ [(1 + 0.00833)^180 - 1]

= $9671.4461

Now

The Monthly payment for 30-year loan

P = $900,000[0.00833(1 + 0.00833)^360] ÷ [(1 + 0.00833)^360 - 1]

= $7898.1441

So,

Difference is

= $9671.4461 - $7,898.1441

= $1,773.3019

b.

Now

Total payment for 30-year loan is

= $7,898.1441 × 180

= $2,843,331.8871

And,

Total payment for 15-year loan is

= $9,671.4461 × 360

= $1,740,860.2907

So,

Difference is

= $2,843,331.8871 - $1,740,860.2907

= $1,102,471.60

i.e. option c

7 0

4 years ago

. A fall in the value of the US dollar against other currencies makes US final goods and services cheaper to foreigners even tho

SpyIntel [72]

Answer:

The partner who insist in the rightward shift

Explanation:

The aggregate demand curve is on a plot with aggregate US output on the X axis and the US aggregateprice level on the Y axis. If you want to know what happens to output demanded in response to changes in the US aggregate pricelevel, you shift ALONG the demand curve. If anything else, except the US aggregate price level changes, you're shifting the entire curve. For example, if interest rates fall, that increasesinvestment and shifts the curve to the right.

Note that, while foreigners are indeed responding to a lowerprice, the lower price in question is in the price the foreign nationals are paying, not the US prices.

5 0

3 years ago

12 26 greatest common fact

kolbaska11 [484]

Answer:

2

Explanation:

6 0

3 years ago

Read 2 more answers

Four aspects of induction<br>

vova2212 [387]

Answer:

Meet colleagues. ...

Tour of workplace. ...

Health and safety. ...

Get all the necessary documents sorted. ...

Get to grips with company policies. ...

Understand their role. ...

Identify any training needed. ...

Organise first appraisal meeting.

8 0

3 years ago

Read 2 more answers

on october 1, eder fabrication borrowed $60 million and issued a nine-month, 12% promissory note. interest was payable at maturi

Lynna [10]

55,110,929 in cash; debit

55,110,929 in credit notes

Promissory note with discounted interest to be recorded

debt 1.583.741,77 in interest

Credit Card Amount Due: 1.583.741,77 Note

—to record interest that has accrued on a payable note —

<h3>What is interest ?</h3>

The cost of borrowing money is known as interest, and it is typically stated as a percentage, such as an annual percentage rate (APR). The rate of inflation, the length of the loan, the availability of funds, and the risk of default are important variables that determine interest rates. Ownership in a business can alternatively be expressed as interest.

The sum of money paid for using someone else's money is known as interest. The $20 you earned this year on your savings account is an example of interest. The $2000 in interest you paid on your home loan this year is an example of interest.

To learn more about interest from the given link:

brainly.com/question/13324776

#SPJ4

3 0

1 year ago