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The last payment for the loan occurs on 1 July 2044. For the next question, we will refer to 2044 as the "final year". Type in the "final year" below (i.e. if the last payment occurs in 2031, type in 2031).
Calculate the equivalent effective monthly rate. Give your answer as a percentage to 4 decimal places, and do NOT include a percentage sign
The interest rate for the loan is 5.6% p.a. effective. Calcualte the equivalent nominal annual rate compounding monthly. Give your answer as a percentage to 4 decimal places, and do NOT include a percentage sign.
The interest rate for the loan is an effective annual rate. Which of the following is the best next step before trying to calculate the required monthly repayment for the mortgage?
a.
Divide the rate by 12 to work in months
b.
Convert the rate to a nominal annual rate compounding monthly, and use this new rate directly to calculate the monthly repayments.
c.
No interest rate conversion is needed. The rate can be used directly.
d.
Convert the rate to an effective monthly rate, and use this rate directly to calculate the monthly repayments.
Explain clearly the function of and the difference between the following terms:
a. Estimates and estimators
b. R2 and Adjusted R2
Qd = 600 -30P
Qs = -300 + 120P
What is the equilibrium price
Draw a consumer budget constraint and indifference curves for Pepsi and Pizza. Find out
the optimal consumption choice when consumer has income of $2000 and the price of Pepsi is $5 per bottle and the price of per pizza is $10.What is the marginal rate of substitution at this optimum?
Classify each of the following statements as positive or normative. Explain. a. Society faces a short-run trade-off between inflation and unemployment b. A reduction in the rate of money growth will reduce the rate of inflation. c. The Central Bank or Federal Reserve should reduce the rate of money growth. d. Society ought to require welfare recipients to look for jobs. e. Lower tax rates encourage more work and more saving.
Classify the following topics as relating to microeconomics or macroeconomics. a. a familys decision about how much income to save b. the effect of government regulations on auto emissions c. the impact of higher national saving on economic growth d. a firms decision about how many workers to hire e. the relationship between the inflation rate and changes in the quantity of money
An economy consists of three workers: Larry, Moe, and Curly. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Larry can either mow one lawn or wash one car; Moe can either mow one lawn or wash two cars; and Curly can either mow two lawns or wash one car. a. Calculate how much of each service is produced under the following circumstances, which we label A, B, C, and D: All three spend all their time mowing lawns. (A) All three spend all their time washing cars. (B) All three spend half their time on each activity. (C) Larry spends half his time on each activity, while Moe only washes cars and Curly only mows lawns. (D)
b. Graph the production possibilities frontier for this economy. Using your answers to part a, identify points A, B, C, and D on your graph. c. Explain why the production possibilities frontier has the shape it does. d. Are any of the allocations calculated in part a inefficient? Explain.
