Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

Ken loans his grandson rex $20,000 at 5.5 percent per year to help pay for executive chef schooling in Florida. Rex requires three years till he begins to earn a salary. he agrees to pay ken the loan in the following order : year 1,2,3 nothing to be paid year 4 : X, year 5 : 2X, year 6 : 3X, year 7 : 4X, year 8 : 5X

1. Discover the value of all the interest paid to ken?

2. What is the dollar amount of each of the five payments?

3. Discover the value of X such that the loan is fully repaid with the last payment.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91225070

Have any Question?


Related Questions in Microeconomics

Question suppose the price elasticity of machinery exports

Question: Suppose the price elasticity of machinery exports in international markets is 2/3, and the dollar is overvalued by 30%, so those exports drop 20%. Also assume that this reduces manufacturing employment by 500,0 ...

If the price of gasoline is 4 per gallon and the price

If the price of gasoline is $4 per gallon and the price elasticity of demand is .4, how much will a 10 Percent reduction in the quantity placed on the market increase the price?

Question is there a gender gap in public relations why does

Question: Is there a gender gap in public relations? Why does the field attract more women than men? How does each gender perceive careers in public relations? Focus groups with majors at three universities provided some ...

Question suppose the utility function for a consumer is

Question: Suppose the utility function for a consumer is given by U = 5XY. X is the amount of Good X and Y is the amount of Good Y. A) Neatly sketch the utility function B) Does this utility function exhibit diminishing ...

Question the discussion answers must be a minimum of 125

Question: The discussion answer(s) must be a minimum of 125 words of substance with any references cited in APA format. No copying and pasting of work previously done for someone else. This week we are looking at industr ...

Question 1 in january 2009 congress passed a major stimulus

Question: 1. In January 2009, Congress passed a major stimulus bill. The bill increased federal spending over several years; in 2010, stimulus spending was $385 trillion, or about 2 percent of GDP. According to the Offic ...

Question the next time the us economy returns to full

Question: The next time the US economy returns to full employment, what factors will determine how much longer it will take for the next recession to develop? (Note: there is no ‘‘right'' answer to this question; the ide ...

Question break into teams and identify four reasons that an

Question: Break into teams and identify four reasons that an international airline such as Southwest or Delta would invest in a project when its direct analysis using both payback period and net present value indicate it ...

Question the c declined an average of more than 3 per year

Question: The C$ declined an average of more than 3% per year relative to the US$ during the 1990s, yet the inflation rate in Canada was almost 1% lower. Also, Canada has a positive trade balance, compared to the huge US ...

Question mary has forgotten to put rental expenses on the

Question: Mary has forgotten to put rental expenses on the budget statement this month. Comment on the appropriateness of her action under each of the following scenarios: i) Mary owns the shop , Mary budgets a rental ex ...

  • 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