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A local bank makes auto loans. It charges 4% per year in the following manner: if $3600 is borrowed to be repaid over a 3-year period, the bank interest charge is ($3600)(0.04)(3 years) = $432. The bank deducts the $432 of interest from the $3600 loan and gives the customer $3168 in cash. The customer must repay the loan by paying 1 /36 of $3600, or $100, at the end of each month for 36 months. What nominal annual interest rate is the bank actually charging for this loan?
In the case of demand-pull inflation, other things being equal:
Suppose the restaurant industry is perfectly competitive. All producers have identical cost curves and the industry is currently in long-run equilibrium, with each producer producing at its minimum long-run average total cost of $8.
Graphically construct the supply and demand schedules and determine the equilibrium price and quantity.
q1. mckee corporation has annual fixed costs of 12m. its variable cost ration is .60.a. determine the companys break
Using the Lagrangean multiplier approach calculate the optimal (i.e., service maximizing) combination of medical and social staff. Determine the optimal amount of service provided by BF.
What sum invested now will be worth £500 in 3 years' time if it earns interest at 12%?
Assume that the U.S. dollar depreciates against the Japanese yen. What is the impact on aggregate expenditures and income?
Suppose that a small nation produces mushrooms for domestic consumption also possible export.
In contrast to the federal government budget of the US, the budgets of the individual states
An aircraft company has signed a contract to sell a plane for $20 million. The firm buying the plane will pay for it in five annual payments (at year end) of $4 million. If the firm's cost of capital is six percent, what is the net present value of t..
Do architects have a responsibility to our society, or should they be able to design whatever they want?” Obviously, architects must design buildings that are safe for people to live in, but what about size, shape, appearance, and materials? Artists ..
Hollow just paid a dividend of $1.68.They expect dividends to grow at 10% for the next 3 years. After year 3, the growth rate will fall to the industry average of 3%.If the required return is 8%, find the current price.
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