Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

Arian is about to borrow $2,000 from his uncle. He has an option to repay the loan at the end of year 4 with 5.43% simple interest per year or with 8.99% interest per year, compounded every 5 months. What is the difference of the total interest paid over 4 years between the two options? (enter the answer as a positive number)

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91237069

Have any Question?


Related Questions in Microeconomics

Question you deposit 413 at the end of each month into an

Question: You deposit $413 at the end of each month into an account that pays a nominal annual rate of 2% compounded monthly. How much will you have in the account at the end of 11 years? The response must be typed, sing ...

Question draw the offer curves for nation 1 and nation 2

Question: Draw the offer curves for Nation 1 and Nation 2, showing that Nation 2 is a small nation that trades at the pretrade-relative commodity prices in Nation 1. How are the gains from trade distributed between the t ...

Question in a linear demand equation what economic

Question: In a linear demand equation, what economic information is conveyed by the intercept on the price axis? Similarly, what economic information is conveyed by the intercept on the price axis in a linear supply equa ...

Question is a tax on margarine efficient in the economic

Question: Is a tax on margarine efficient in the economic sense of the term? Why would margarine producers prefer to have an excise tax impose on both butter and margarine? Would such a tax be more or less efficient than ...

Question what major factor causes the implicit price

Question: What major factor causes the implicit price deflator and the chained price deflator to diverge over time? Under what circumstances would we expect to find very little difference in these two measures of prices? ...

Question a define crisis management what should a company

Question: a. Define crisis management. What should a company facing a crisis do to satisfy its stakeholders and protect its reputation? b. Describe the process of developing stakeholder relationships. What parts of the p ...

Question some companies offer programs that give employees

Question: Some companies offer programs that give employees a financial reward if they successfully quit smoking. Is a company more likely to offer this if it self-insures or if it contracts its health care to an outside ...

Question -a a price-discriminating monopolist serves two

Question - a. A price-discriminating monopolist serves two markets: young professionals and university students. The demand curve of the young professionals for this product is q 1 = 100 + 40p 1 - p 1 2 and the demand cu ...

Question mampms are colorful button shaped chocolates

Question: M&Ms are "colorful button shaped chocolates." Suppose that from our point of view as a consumer, each M&Ms: M&Ms is equally likely to have one of c different colors. We randomly sample 3 M&Ms: the two have the ...

Question - the following table provides a probability

Question - The following table provides a probability distribution for the random variable x. x f(x) 3 .25 6 .50 9 .25 A) Compute E(x), the expected value of x. B) Compute s 2 , the variance of x (to 1 decimal). C) Compu ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved