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You have decided to purchase a home after graduation, and you are saving for the closing costs ($3500) and down payment. To avoid paying mortgage insurance and to get a better interest rate, you need a down payment of 20%. You can afford a monthly payment of $700 based on your current earnings and anticipated expenses. The amount available for the mortgage is reduced by an estimated $150 per month to cover home insurance and real estate taxes. The current nominal annual interest rate is 3% for a 30-year fixed-rate mortgage loan, payments made monthly. How much of a loan can you afford? What is the corresponding house price? How much must you save?
how should she reallocate her expenditures between the two goods
A consumer must pay $10 per visit to an amusement park for the first five visits but only $5 per visit beyond five visits. What does the budget.
Smokey's Garage, Inc., provides routine auto diagnostics for customers in the Atlanta, Georgia, metropolitan area. Tests are supervised by skilled mechanics using equipment produced by two leading competitors in the auto test equipment industry. Does..
Grandpa would like to deposit some money now for his grandson to have available to beginning withdrawing $25,000 per year for four years, starting 5 year from now. If the money earns 6% interest per year, the amount that Grandpa must deposit is close..
Suppose a wage increase from $19 to $21 an hour increases the number of job applicants from 50 to 64. What is the price elasticity of labor supply?
prisoners dilemma is a game that has been and continues to be studied by people from a variety of disciplines from
A second reason the government may impose a tax is to reduce consumption of a good. Such taxes are known as sin taxes. Some argue that we should make some drugs legal and tax them in order to raise tax revenues for the government. Given what you know..
Hospital is an example of a service processes that has
The short-run and long-run effects of this change for the levels of per-capita output, and the growth rates of (total) output and per-capita output.
q.you are watching national news broadcast with your parents. the news anchor clarifies that the exchange rate for the
Suppose that the monthly demand function of a particular commodity is given by P= 200 -0.4x and the supply function is P = 0.2x + 80 where x is the number of units demanded and supplied and P is in pesos. Determine the equilibrium prics and quantity
For lunch, Ada prefers to eat soup and bread in fixed proportions. When she eats X pints of soup, she prefers to eat 2X ounces of bread. If she has X pints of soup and more than 2X ounces of bread, she eats all the soup along with 2X ounces of bread ..
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