What is the maximum car purchase price

Assignment Help Microeconomics
Reference no: EM132158798

Quesiton: A student has a job that leaves her with $500 per month in disposable income. She decides that she will use the money to buy a car. Before looking for a car, she arranges a 100% loan whose terms are $500 per month for 36 months at 18% annual interest. What is the maximum car purchase price that she can afford with her loan?

Reference no: EM132158798

Questions Cloud

How many draws does it take on average to record k : Think of an urn with n balls numbered from 1 to n. How many draws does it take on average to record k different numbers?
Price elasticity of demand for ambulatory mental : The price elasticity of demand for ambulatory mental health services appears to be about -0.8, and the price elasticity for general ambulatory medical services
What considerations are there besides economic factors : Argentina is considering constructing a bridge across the Rio de la Plata to connect its northern coast to the southern coast of Uruguay.
Comment on your observations in a statement : Analytically convert this ordinary differential equation into an equivalent system of coupled first order ordinary differential equations.
What is the maximum car purchase price : A student has a job that leaves her with $500 per month in disposable income. She decides that she will use the money to buy a car.
Actions in the event increased : Give an example of an event in the last few years where the actions in the event increased our (U.S.A.) GDP number, but, most likely
Can she afford to buy the car : The student in Problem 5-23 finds a car she likes and the dealer offers to arrange financing. His terms are 12% interest for 60 months and no down payment.
How much can robot afford to pay for the equipment : By installing some elaborate inspection equipment on its assembly line, the Robot Corp. can avoid hiring an extra worker who would have earned $36,000.
Find present worth of benefits of replacing one production : Jerry Stans, a young industrial engineer, prepared an economic analysis for some equipment to replace one production worker.

Reviews

Write a Review

Microeconomics Questions & Answers

  What are the equilibrium quantities

What are the equilibrium quantities when the nations trade freely at price of $15? Explain your answer

  Explain two arguments against keynesian fiscal policy

Explain two arguments against Keynesian fiscal policy, one using the concept of "crowding out" and the other showing that it can only cause inflation.

  Problem related to the economic information

As an investor, what kind(s) of economic information would you look for if you were thinking about investing in the following?

  What is the price of electricity and the tax levied

If the government levies a pollution tax such that the utility produces the efficient quantity, what is the price of electricity, the tax levied.

  Identify your major cash flows for the current school term

Identify your major cash flows for the current school term as first costs, O&M expenses, salvage values, revenues, overhauls, and so on.

  Create the ppf for ray who can compose two blues songs in

make a ppf for ray who can compose two blues songs in an hour or four jazz songs in an hour. include one point that is

  Field of managerial economics and globalization

Propose two applications of the knowledge that you have learned in this course to your current or a future position. Provide a rationale for your response.

  Uncertain economic times

In uncertain economic times, what serves as a way of preserving economic value that can be spent or consumed in the future?  a. obtaining a credit card b. owning gold

  Can you compare the r2 terms of the two models

Suppose you estimate the consumption function Yi = α1 + α2 Xi + u1i and the savings function Zi = β1 + β2 Xi + u2i -What is the relationship, if any, between α2 and β2 ? Show your calculations.

  How tall must a man be so that we would predict

Assume that the least-squares line for predicting forearm length (y) from height (x) is y = -0.2967 + 0.2738x . Both forearm length and height are measured in inches in this equation. Predict the forearm length of a man whose height is 70 in.

  Determining labor and costs

Explain the law of diminishing returns in your own words. This idea can be applied to other concepts in economics. Think about your own utility from consumption. Give a personal example of diminishing utility.

  What was average effect of ability tracking on test scores

What was the average effect of ability tracking on test scores for the full sample? On average, did tracking improve test scores? [1-2 sentences]

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