Consider a $760 CF at the beginning of 2063. The interest rate
is 3.9%. What is...
Consider a $760 CF at the beginning of 2063. The interest rate
is 3.9%. What is the equivalent uniform amount for a series of
end-of -year CFs spanning 2050-2055? (answer: $87.88)
Consider a 30-year mortgage for $137018 at an annual interest
rate of 3.9%. What is the remaining balance after 19 years? Round
your answer to the nearest dollar.
Consider a 30-year fixed-rate home loan of $545,500 with an
interest rate of 3.25%. What is the total amount of interest paid?
(Round your answer to the nearest cent.)?
Between the beginning of 2020 and the middle of 2020,
A. the typical interest rate on jumbo mortgage went up, relative
to the interest rate on conforming mortgages
B. the typical interest rate on conforming mortgages went up,
relative to the interest rate on jumbo mortgages
Consider an economy with the interest rate at r = 0.25 and no
growth rate. The market where firms compete is very volatile and
there is a high probability h = 0.2 that the industry collapse.
Would the firms accept a collusive agreement to set monopoly price
and share equally the market if I = {1, 2}?
In January 2020, the unemployment rate in California was
currently 3.9%. You guess that the rate specifically in Los Angeles
County is higher, since you think that the job market in Los
Angeles consists of younger people. You randomly sample 850
employable people in Los Angeles and find that 100 are unemployed.
At the 95 percent confidence level, does the data you collected
support your claim?
If the appropriate
interest rate is 8%, then present value of $500 paid at the
beginning of each of the next 40 years is:
(Please write numbers
only, no "$", no ",", round to the dollar, no
decimal. i.e. write $1,234.56 as 1235)
Interest Rate Target: Most modern central banks announce
a target for a specific interest rate. Consider each of the two
scenarios below, and describe how the central bank would react to
maintain a constant interest rate. Draw an IS-LM graph that shows
the initial shock. Then discuss the change to the money supply that
would keep interest rates constant, the open market operation (bond
market transactions) that the central bank does to accomplish that
change, and how it shows up...