Answer:
The annual difference between Option 1 (15 years) and Option 2 (20 years) is $7,211.19 in favor of the first one.
Explanation:
Giving the following information:
Option 1:
Number of years= 15
FV= 450,000
i= 0.0525
Option 2:
Number of years= 20
FV= 450,000
i= 0.0525
To calculate the annual cash flow, we will use the following formula on each option:
A= (FV*i)/{[(1+i)^n]-1}
A= annual cash flow
<u>Option 1:</u>
A= (450,000*0.0525) / [(1.0525^15) - 1]
A= $20,464.72
<u>Option 2:</u>
A= (450,000*0.0525) / [(1.0525^20) - 1]
A= $13,253.53
The annual difference between Option 1 (15 years) and Option 2 (20 years) is $7,211.19 in favor of the first one.
Answer:
Income effect
Explanation:
Own price increases are associated with decreases in quantity demanded, ceteris paribus. These decreases in quantity demanded are composed of two effects, the substitution effect and the<u> Income effect.</u>
We know as per the law of demand, price increases lead to decrease in the quantity demanded if factor remain constant.
Quantity demanded has effect of two other major factors:
- Subtitution effect.
- Income effect.
Subtitution effect: It is the price of subtitution goods & services also lead to increase and decrease of demand for any particular goods.
Example: Price of tea and coffee.
Income effect: It is the income of consumer that effect the demand of any goods & sevices, as with the increase in income of consumer, their demand for inferior goods decreases and demand for branded goods increases.
Example: Non branded clothes and branded clothes.
The portion of the second monthly payment made on January 31, 2021, which represents repayment of principal is $15600.
<h3>
Mortgage liability </h3>
Mortgage liability limits the liability of potential third parties who were not involved when the mortgage was arranged. For example, if a mortgage is in arrears, the debtor has to pay the outstanding principal and interest, plus late payment and other charges.
<h3>
What is mortgage asset or liabilities?</h3>
A current liability for
1) the principal payments that will be coming due within one year after the balance sheet date, and
2) any accrued interest that is owed as of the balance sheet date.
To learn more about current liability visit the link
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<span>you are still likely to do the favor for ben because you have just been a victim of the: lowball technique
The lowball is a selling technique in which an item is offered at a lower price than actually intended AFTER we increase the basis price. This technique often works because people have the tendency to conform to additional favor is it convinced to do another favor before
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Answer:
A) Higher income taxes will cause a decrease in disposable income and this will affect personal expenditure which will cause the aggregate demand curve to shift leftwards ( decrease in price level and real GDP )
B)
i) Change in input price
ii) Change in production cost
iii) Increase in labor supply or increase in capital stocks
Explanation:
A) Effects of higher income taxes on aggregate demand curve
i) Higher income taxes will cause a decrease in disposable income and this will affect personal expenditure which will cause the aggregate demand curve to shift leftwards ( decrease in price level and real GDP )
B) The factors that will cause the short-run aggregate supply curve to shift
a) Change in input price
b) Change in production cost
c) Increase in labor supply or increase in capital stocks
