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A friend of yours recently graduated from law school with $125,000 in student debt. The interest rate on these loans is 6.25%. Your friend has various options on how to repay the loans and is asking for your help to understand the pros and cons of the various options.
2. The second option is to repay the loan with a fixed amount per month for 25-years
a. How much will your friend pay each month?
b. How much will your friend pay in interest over the life of the loan?
3. The third and final option is to repay the loan using a graduated repayment plan. Under the graduated repayment plan your friend’s payments will start low and increase each month at an annualized rate of 3%. The graduated repayment plan will repay the loan over a 10-year period.
a. How much will your friend pay the first month?
b. How much will your friend pay the second month?
c. How much will your friend pay the final month?
d. How much will your friend pay in interest over the life of the loan?
Suppose the market for watermelon can be described as the graph below . If Jon is willing to pay 8 dollars
How do interest rates affect household savings
Will each of the following shift China's per-worker production function or just cause a
movement along the curve?
a. Capital per worker increases
b. China's government increases spending on university research
C. China's government increases spending on schools
Briefly explain so each of the following policies will impact U.S. economic growth
a.
Congress passes and investment tax credit, which reduces a firm's taxes if it installs new
machinery and equipment.
D. Congress passes a law that allows taxpayers to reduce their federal income taxes by the
amount of state sales taxes they paid
C.
Congress provides more funds for low-interest loans to students
You have recently been hired to be the COO (Chief Operating Office) of a start-up company and your primary goal is to help grow the business. The company reported sales of $2 million last fiscal year. The company currently does not offer trade credits because the majority of its customers use credit cards. In a bid to expand the business, you are asked to determine whether extending trade credits is a good idea.
(a) List and explain 4 factors that will be important for you to make this decision? Meaning, as the COO, what factors do you need to take into consideration if you are planning to start offering trade credit.
(b) Given what you know, are you for or against the company offering trade credits.
The utility function of a household is given by U^0 = A^0.4B^0.7 . Suppose the prices of
commodities A and B are denoted as pa and Pb respectively.
a. Derive the relevant household Hickson's demand functions given that household income is denoted as Y.
b. Would you say that the two commodities A and B are substitutes? Why?
c. Derive the equation of income consumption curve.
d. Derive the marginal rate of commodity substitution.
1. Create five questions covering one question from each of the below topics along with ideal answers that you would expect to be on an assignment.: a) Functions (Continuity and inverse of a function), b) Functions (Equilibrium)
explain the price elasticity of demand curve and state its relationship to a firms total revenue and relationship to the customers total expenditure
If a quantity demand Q=50-p, how much will be a price at a minimum production?
