Read the scenario, reflect and write down your reactions on the dilemma:

A woman was on her deathbed. There was one drug that the doctors thought might save her. It was a form of radium that a druggist in the same town had recently discovered. The drug was expensive to make, but the druggist was charging ten times what the drug cost him to produce. He paid 200fortheradiumandcharged2,000 for a small dose of the drug. The sick woman's husband, Stans, went to everyone he knew to borrow the money, but he could only get together about $1,000 which is half of what it cost. He told the druggist that his wife was dying and asked him to sell it cheaper or let him pay later. But the druggist said: “No, I discovered the drug and I'm going to make money from it.” So Heinz got desperate and broke into the man's laboratory to steal the drug for his wife. Should Heinz have broken into the laboratory to steal the drug for his wife? Why or why not?

Fill up your reaction following the format below:

Level	Stage	Stans should steal the drug, because	Stans should not steal the drug, because
Pre-conventional	Obedience
	Self-interest
Conventional	Conformity
	Law-and-order
Post-conventional	Social contract orientation
	Universal human ethics

Jody is planning to buy a car for $20,000, putting 20% down in cash, with the rest going towards a loan. The bank tells her that the interest rate on the loan will be 8% per year, which is then compounded monthly, for a three-year loan. What is Jody’s monthly payment going to be?

You would like to buy a house and will need a down payment of $19,367 in 8 months. How much would you have to invest, each month, starting next month, for 8 months to exactly pay for the down payment if your investments earn 2.58% APR compounded monthly?

The current supplied by a battery slowly decreases as the battery runs down. Suppose that the current as a function of time is: I = ( 0.600 A)e^(-t/6hr).

What is the total number of electrons transported from the positive electrode to the negative electrode by the charge escalator from the time the battery is first used until it is completely dead (expressed as a number of electrons)?

• The original sale price of a car is $22,194.96. The required down payment is $1,410. The monthly payment a customer will pay on the note is $604.36 for a 3-year auto loan with a promotional financing rate at 2.99%? Given that information respond the Following

• 	Based on the information from Q48, if a customer decides to skip the 2.99% financing promotion loan but take the cash rebate offer, how much cash does the customer need to pay to buy the new car? We assume that regular market interest rate for auto loan is 6%.
  	Selected Answer: $21,213.64 Answers: $19,264.02 $19,865.92 $21,213.64 $21,275.92

• Question 50

  0 out of 5 points

  	Based on the information from Q48 and Q49, what’s the amount of cash rebate can the customer receive from the dealer if he decides to pay for the car with all cash instead of applying for the auto loan with the 2.99% low interest rate?
  	Selected Answer: $1,521 Answers: $1,521 $2,329 $919 $3,930

You would like to buy a house and will need a down payment of $18,119 in 6 months.

How much would you have to invest, each month, starting next month, for 6 months to exactly pay for the down payment if your investments earn 3.7% APR compounded monthly?

you plan to buy a boat for $10,000 and the terms are 20% down payment with the balance to be paid over 40 months in equal monthly installments. If the first payment is one month from today and the interest rate is 24% per year, what is the value of each installment? (round to the nearest dollar)

A travel agent arranged a payment plan for a client. It required a down payment of $300 and 12 monthly payments of $567. What was the total cost of the plan?

Some friends tell you that they paid $14,773 down on a new house and are to pay $769 per month for 30 years. If interest is 6.3% compounded monthly,what was the selling price of the house?How much interest will they pay in 30 years?

You financed the purchase of a $300,000 apartment with a down payment in cash of 20% of the purchase price. The remaining 80% is financed with a mortgage with a 1% monthly interest rate over the next 20 years. The mortgage is repaid with equal monthly installments.

1. Compute the monthly installments on the mortgage. (5 points)

2. What is the outstanding principal balance of the mortgage after 5 years (i.e., after 60 installments)? (5 points)

3. Ten years later (after 120 installments), your bank manager offers to refinance your mortgage with a new loan carrying a 0.9% interest rate for a one- time commission. What is the maximal commission you would be willing to pay? Assume you pay the commission when you refinance. (Hint: Use Excel Solver. Find the EAR of the old and new mortgage.) (10 points)