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A friend of yours just bought a new sports car with a $5500 down payment, and her $32,000 car loan is financed at an interest rate of 0.75% per month for 36 months. After 2 years, the "Blue Book" value of her vehicle in the used-car marketplace is $10,000.
a. How much does your friend still owe on the car loan immediately after she makes her 24th payment?
b. Compare your answer in Part (a) to $10,000. This situation is called being "upside down." What can she do about it?
Please show working and round to 3 decimal places
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Assume that there are two types of consumers. In particular, consumers of type 1 has utility function u(x, y) = x0.5 y0.5, whereas consumer of type 2 has u(x, y) = x0.3 y0.7. Find the Marshallian demands of x for both types of consumers. Compute the ..
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Consider an economy with two sectors, high tech (H) and low tech (L), and three types of workers: scientists (S), managers (M) and blue-collar (B). S and B are the septic factors of the H and L sectors, respectively. Managers can work in both sectors..
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