Answer:
Present value (PV) = $57,500
Interest rate (APR) = 5.9%
Number of years = 5 years
Number of installments in a year (m) = 12
Monthly payments (A) = ?
PV = A<u>(1 - (1 + r/m)-nm</u>)
r/m
$57,500 = A<u>(1 - (1 + 0.059/12)</u>-5x12
0.059/12
$57,500 = A<u>(1 - (1 + 0.004916666667)</u>-60
0.004916666667
$57,500 = A<u>(1 - (1.004916666667)</u>-60
0.004916666667
$57,500 = A<u>(1 - 0.745069959)</u>
0.004916666667
$57,500 = A(51.85017778)
<u>$57,500 </u> = A
51.85017778
A = $1,108.96 per month
Explanation:
In this case, we need to apply the formula for present value of an ordinary annuity on the assumption that payment is made on monthly basis. The present value, interest rate (APR), number of years and number of installments in a year were provided in the question with the exception of monthly payment. Thus, the monthly payment becomes the subject of the formula.
Answer:
The correct answer is decrease; tightening.
Explanation:
If the FED reduces the money supply, it can cause interest rates to rise and credit conditions to tighten. If there is no change in the demand for money, the effect of reducing the money supply is said to lead to higher interest rates. For its part, another effect is to decrease the volume of loans made.
Answer: Option (C) is correct.
Explanation:
Correct option: The price level and nominal wages.
According to the classical dichotomy, nominal variables moves proportionately with the quantity of money whereas real variables remains unchanged.
A classical model that is based on the flexibility of prices and wages, conclude that any changes in money supply only affects the nominal variables whereas real variables remains constant. This theory results in the independence of the real variables from any changes in the money supply and nominal variables.
Answer:
Option "C" is correct.
Explanation:
This occurs when the portion of the marginal cost curve is above its average cost curve.
<u>Answer:</u>
Consumer behavior considers numerous reasons why individual, situational, mental, and social individuals look for items, purchase, use, and afterward discard them.
Evaluative criteria are positive qualities that are imperative to you, for example, the cost of the knapsack, the size, the number of compartments, and shading. A portion of these attributes are valued highly as compared to others. For instance, the size of the rucksack and the cost may be more imperative to you than the shading except if, state, the shading is hot pink, and you despise pink.
