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You have a credit card debt which is attracting interest at 18:5% per annum (APR) with monthly compounding. The bank has told you that if you pay $328:37 per month it will take you exactly 107 months to pay o. the debt. Instead, you want to pay it o. faster by paying a larger amount each month. You believe that you can a.ord to pay $360 per month, and you will not use the credit card to make any more purchases.
(a) Find the e.ective monthly interest rate. Find the PV of the debt.
(b) How long will it take you to clear the debt if you raise your monthly payment to $360? Answer in months with at least two decimal places. Assume that all payments are made at the end of each month
Suppose the doctor would be content with 95% confidence. How does the decrease in confidence affect the sample size?
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Suppose that demand for rollerblades is given by D(p) = A ? p. The cost function for all firms is C(y) = wy2 + f , where f is a fixed set-up cost. The marginal cost of production is MC(y) = 2wy. Assume that the industry is perfectly competitive. Find..
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