1. oprah just inherited a house with a market value of 150,000 and she does not expect the market value to change. Each year, will pay 300 for utilities and 2000 in taxes. She can earn 4 percent on money in a bank account. Her cost of living in the house for the year is $
2. the cost of flower business. Jen left job paying 40,000 per year to start her oen florist shop in a building she owns. the market value of the building is 200,000. She pays 40,000 per year for flowers and other supplies, and has a bank account that pays 6 percent interest. What is the economic cost of Jen's business?
3. Inflation and interest rates. Len buys MP3 music at $1 per tune, and prefers music now to music later. He is willing to sacrifice 10 tunes today as long as he gets at least 12 tunes in a year. When Len loans $50 to sam for one-year period, he cuts bak his music purchases by $50 tunes.
a. Len is willing to sacrifice 10 tunes today as long as he gets at least 12 tunes in a year. Len expects sam to repay him the equivalent of ----- tunes, so the implied interest rate is -------percent. To make Len indifferent about making the loan, sam must repay him $----