Compute the real interst rate for the loan

Assignment Help Econometrics
Reference no: EM13219105

John Smith bought a house for $100,000 two years ago. The down payment was $20,000 and the remainder was financed at 6%interest ratefor 15 years. The annual inflation rate for the past 2 years has been 2% and it is anticipated to remain at this rate for the next 13 years. Compute the real interst rate for this loan.

Reference no: EM13219105

Questions Cloud

What was cost the year before installation of transducers : Ford Motor Company was able to reduce by 80% the cost required for installing data acquisition instrumentation on test vehicles by using MTS-developed spinning wheel force transducers. (a) If this year's cost (i.e., end of year 1) is expected to be..
Calculate the electron : A new semiconductor has Nc = 1019 /cm3 and Nv=5 x 1018, and Eg = 2eV. If it is doped with 1017 donors (fully ionized), calculate the electron, hole, and intrinsic carrier concentrations at 627K.
What instruction is used to change the opacity : In animation programs, special effects are achieved by changing the properties of objects. What instruction is used to change the opacity and color properties of objects in the Zeus example world?
Create a cron file that will regularly perform : Create a cron file that will regularly perform the following backups:?
Compute the real interst rate for the loan : John Smith bought a house for $100,000 two years ago. The down payment was $20,000 and the remainder was financed at 6%interest ratefor 15 years. The annual inflation rate for the past 2 years has been 2% and it is anticipated.
Does the fear of social loafing play a role : Defend your view why do many college students try to avoid group work if they are given a choice? Does the fear of social loafing play a role? What other factors in groups or team work play a role?
Prepare a cobol program : The purpose of this iLab assignment is to read data from a sequential file and produce a detail list of the records with simple formatted output (no headings and totals). In addition
Calculate line voltage rms : Three-phase inverter has Y-connected load of 10 ohm and 23mH inductance. The inverter frequency is 60Hz and the dc input voltage is 200v. Calculate line voltage rms? , Phase voltage, rms?
Type of organism are there victims of this type of crime : A doctor has applied for a new patent on new technology involving the use of advanced computers to create a new type of organism are there victims of this type of crime

Reviews

Write a Review

Econometrics Questions & Answers

  What is the maximum price you can anticipate

own a bond that pays a semiannual coupon of $100 on Jan. 1 and July 1 of each year until 2020, and will pay $10,000 in addition to the coupon payment on Jan. 1, 2020. Tomorrow (Jan 2, 2012) you receive two pieces of information.

  Determine the average cost function

If the firm can only produce one product and seeks to maximize weekly profit, write a condition that indicates when the firm should choose to produce Product 2 (where this condition is a function of the number of units sold per week).

  Estimate the purchase price for the new boiler

The purchase price of a natural gas- fired commercial boiler (capacity X) was $181,000 eight years ago. Another boiler of the same basic design, except with capacity 1.42X, is currently being considered for purchase. If it is purchased, some optio..

  Is the firm charging the optimal price for thimajigs

Suppose Thimajigs have a variable cost of $10 per unit and currently sell for $25. Price elasticity of demand for Thimajigs Et = -3.0 (A) Is the firm charging the optimal price for Thimajigs Demonstrate how you know.(B) Should the price be changed I..

  What is the slope of budget line from trading with friday

Suppose that you are on a desert island and possess exactly 20 coconuts. Your neighbor, Friday, is a fisherman, and he is willing to trade 2 fish for every 1 coconut that you are willing to give him. Another neighbor, Kwame, is also a fisherman

  Explain briefly the shape of mc in the industry

In general, the marginal cost curve is U-shaped as you learned in lectures and the textbook. However, exception exists. Please provide one particular industry as an example to illustrate that MC is not U-shaped. Explain briefly the shape of MC in ..

  Determine what is the expected value of the delay

The internal study could be started immediately, and then the decision on the consultant could be made in three months. If this option is selected, the internal study will reliably indicate the outcome. If the consultant were hired, it would add t..

  At what output is average product maximized

From the information in the table, calculate marginal and average products. Graph the three functions (put total product on one graph and marginal and average products on another). For what range of output does this function have diminishing marginal..

  What is the size of your mpc and mps

Keynes rejected the classical notion of Say's law. He argued that under-spending was very likely. Keynes focused on aggregate demand (total spending) as being the key determinant to the level of macroeconomic activity not aggregate supply which wa..

  Determine how much will kris-payments be

The car dealership allows her to defer payments for 12 months, and Kris makes 36 end-of-month payments thereafter. If the original note (loan) is for $24,000 and interest is 12% per month on the unpaid balance, how much will Kris/ payments be

  Question about multiple regression

Assume that when using the multiple regression in the formula Y = b1X1 and b2X2 + E that X1 represents wages and X2 represents transportation expenses?

  What is the cost of producing q output in the short-run

What is the marginal cost of producing a 301s unit A 401st unit If you are comfortable doing so, you may answer this question by writing down the marginal cost function directly, rather than recalculating total cost for q = 301 and q = 401.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd