Answered: If you borrow $3,000 at 6% simple…

If you borrow $3,000 at 6% simple interest per year for seven years, how much will you have to repay at the end of seven years Select one-

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: The Basic Tools Of Finance

Section: Chapter Questions

Problem 2CQQ

See similar textbooks

Related questions

Q: Assume a banking system where all banks hold target levels of reserves and there is a currency…

A: The formula to measure the deposit multiplier is mentioned below: Deposit Multiplier =1Required…

Q: Consider a two-period dynamic resource allocation problem where the efficient allocation of a…

A: The ideal distribution of all resources in society, taking into consideration all internal and…

Q: 11. Which of the following are not included in GDP statistics? The value of goods and services O…

A: GDP is the total value of all goods and services produced in a given economy during a set period of…

Q: Q1 = (4310/22) - (P1/22) %3D Q2 = (5021/17) - (P2/17) %D TC = 760 + 14Q1 + 32Q2 %D Forme the

A: Answers The demand functions are given as, Q1 = (4310/22) - (P1/22) or, P1 = 4310 -…

Q: Penny Game Rules: The game begins with a group of 10 pennies. Two players take turns making moves.…

A: The Game of Nim is discussed as a game with the following rules : There are a number of piles in…

Q: You are a convenience store owner and you want to sell a chocolate bar. Its wholesale price is 60…

Q: An example of a firm that would least likely be recognized as socially responsible is a. a farm that…

A: Socially Responsible means which is for the benefit of the society or basically consumers as a…

Q: ne Bank of Canada maintains an operating band for the overnight interest rate of a. 50 percent of…

A: There is a system of "operating bands" for overnight trading at the Bank of Canada. These bands are…

Q: What is the present value or price of a 10 year P20,000 annuity with an interest rate of 5% a.…

A: Compound interest, also known as Interest on Interest, is interest that is added to the interest…

Q: 8. Some seed cleaning equipment was purchased in 2009 for $8,700 and is depreciated by the double…

A: The double declining balance method of accelerated depreciation is a type of accelerate depreciation…

Q: 5. Suppose your father earned a salary of 15000$ in 2010. If the CPI is 31 in 2010 and 220 in 2022…

A: Inflation is the consistent rise in average price over period of time . It reduces the value of…

Q: Levi Strauss and Wrangler are planning new generation jeans and must decide on the colors for their…

A: Dominant strategy is the strategy that gives maximum payoff to a player irrespective of what other…

Q: How new is globalization? What has led to increased globalization?

A: Globalization is the process of bringing people from all around the world together. It's the process…

Q: Analyse using a demand and supply diagram the effect of introducing tax on gym membership

A: Meaning of Demand and Supply: The term demand refers to the willingness of an individual to…

Q: certain copier machine cost P150000 with a trade-in value of P15000 after making 800,000 copies.…

A: *Answer:

Q: . If aggregate demand shifts right, what is equilibrium output? d. if aggregate demand shifts left,…

A: The curve that depicts various quantities of goods and services being demanded at various levels of…

Q: Suppose there is a slowdown in economic activity worldwide and many foreign governments decide to…

A: An increase in government spending has a significant impact on the economy.

Q: The original cost for a certain piece of equipment is P150, 000 and it depreciated by 10% sinking…

A: Given: Price of equipment=P 150,000 Depreciation by sinking fund=10% The measure which depicts…

Q: istinction between short-run and long-run equilibrium and factors affecting it?

A: Short-run equilibrium is the equilibrium that is determined on the basis of aggregate demand and…

Q: ings that Mark Louis provided to you during an online presentation.

A: 1. Leverage your voice Whenever you eliminate the actual point from your show, your voice…

Q: What is current industrial policy in UK.

A: Industrial policy is the government's deliberate effort to encourage economic transformation, i.e.…

Q: 13. Depreciation decreases: * Capital O Cash O Bank O Liabilities

A: In economics, capital is defined as assets which include tools, plants, and equipments. These assets…

Q: Identify and briefly explain the neoclassical argument and the key building blocks of neoclassical…

A: Answer -1 According to neoclassical economics, the economy adjusts to its potential GDP output level…

Q: company purchased factory equipment on January 1, 2021 for $84,000. It is estimated that the…

A: Given Equipment cost in 1 Jan 2021 = 84000 $ Salvage value = 8000 $ Time = 10 years Adjusted value…

Q: In the Aggregate Expenditure framework, which of the following government policy choices offer a…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: 9. In 1970, Mr. Sami earned $12,0 1980, he earned $24,000; and i he earned $36,000. If the CPI v…

A: A nominal salary is an amount a person received in monetary terms. Real salary is the purchasing…

Q: What can government (if anything) do to adapt to the changes before the end of fiscal year if their…

A: In an economy, government implements fiscal policy and tries to acheive the set goal, but sometimes…

Q: Three natural barriers to entry are control of resources, patents and copyright law, and licensing.…

A: A monopoly is a market structure in which there is only single firm in the market that sells a…

Q: How did globalization come into existence? How does the meaning of globalization vary in its 4…

A: "Since you have asked multiple questions ,we will solve first question for you.If you want specific…

Q: 2.8

Q: 3. A manager has estimated the average variable cost (AVC) function for his firm to be: AVC= 60 -…

A: Answer; Level of output at which production is most efficient is 6.

Q: When people trade, how do both sides (two or more countries) benefit?

A: Ricardo puts down this concept and claims that not only is the weakest country in terms of producing…

Q: Suppose you like watching YouTube videos more than I do. The marginal va day must be higher than the…

A: Below is the curve for marginal value:

Q: ) John consumes two goods, X and Y. The marginal utility of X and the marginal utility of Y satisfy…

A: Th the answer is as follows:-

Q: Consider the basic AD/AS macro model in long-run equilibrium that experiences a positive AD shock.…

A: AD-AS determines the equilibrium GDP and price level in the economy.

Q: How modern macroeconomics is different from traditional macroeconomics?

A: The modern study and analysis of macroeconomics starts with how microeconomics units, consumers and…

Q: In what way are the factors used to calculate the current account balance similar to each other?…

Q: Assume that a Cob-Dougls production funcin is god reprsetin ofthe economy,the substutin efeti…

A: A flexible real wage rate system raises the real wage rate while lowering the equilibrium labor…

Q: In 2014, a devastating typhoon hit the Philippines, destroying roads and buildings, and killing…

A: The value of all goods and services generated by an economy in a very given year is reflected in…

Q: 3. Given a particular budget, if Mrs. Bain would like to maximize her utility from days of horseback…

A: Consumer equilibrium that implies highest level of satisfaction consumer can achieve is determined…

Q: Economics How do price ceilings in the rental housing market affect tenants? A. Since price ceilings…

A: Price ceiling refers to fixing the maximum price of a commodity at a level lower than the…

Q: QUESTION 7 Player 2 Left Right P1: $6 P1:$0 Player 1 Up P2: $6 P2: $5 P1: $3 P1: $1 Down P2:$8 P2:…

A: Dominant strategy: is the strategy that gives maximum payoff to a player irrespective of what other…

Q: 2. Given a particular budget, if Mrs. Bain would like to maximize her utility from days of horseback…

A: In consumer equilibrium, the level of satisfaction and utility is determined on the basis of the…

Q: 5. According to the documentary on Athenian Democracy, the dark side of democracy was that the…

A: Democracy refers to the way of operating society by the government in which people elect their…

Q: Explain, with the aid of a graph, market equilibrium and disequilibrium.

A: In a market economy, economic forces such as supply and demand are balanced. When economic variables…

Q: monetary expansion is. while the long-run effect is A) higher output and prices; higher prices but…

Q: vertical mergers, assume two firms work together to produce a product. Firm 1 has an investment…

A: Introduction Two firms work together to produce a product. a) Investment level of firm 1 = i1…

Q: Figure: Foreign Exchange Markets Dwon D, Quee Qs Reference: Ref 12-3 (Figure: Foreign Exchange…

A: The change in the interest rate affects the inflow and outflow of funds.

Q: Assuming a fully competitive electricity market where the cost function of all suppliers is given by…

Question

If you borrow $3,000 at 6% simple interest per year for seven years, how much will you have to repay at the
end of seven years
Select one:
O a. non
O b. $4,260
O c. $1,260
O d. $3,000
O e. $4,511

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Suppose that you’ve got $100 in a savings account earning 5% interest. How many years will it take to double? Give typing answer with explanation and conclusion
Economics In 54 months time you expect a cash flow of $3 million. Calculate it’s present value (PV) given the 54-month interest rate is currently 4%, with a volatility of 120 basis points (bps). Explain, using equations with properly-defined mathematical notation, how to map this cash flow to vertices at 4 years and 5 years, in such a way that the volatility of the present value of the mapped cash flow remains at 120 bps. Suppose the 4-year rate has a volatility of 110 bps and the 5-year rate has a volatility of 150 bps, and their correlation is 0.9. How much should be mapped to each vertex. Give your answer in PV terms and round your answers to whole $ values.
Find the present worth today in real value corresponding to the cur- rent values shown below for a 4 percent ination rate and a 4 percent interest rate. a. $400 three years from now b. $400 three years ago c. $10 next year d. $350 983 in 10 years from now e. £1 one thousand years ago the answer is 292 f. $1 000 000 000 three hundred years from now
1. Suppose that you invest $100. At 3% interest, how long does it take to double your money? To quadruple it?2. Suppose that Anna's college education would cost around $500,000 when they enter college in 15 years. At present, She have $100,000 to invest.What annual interest must she earn on her investment to cover the cost
Compare the interest earned by $15,000 forten years at 8% simple interest with that earned bythe same amount for ten years at 8% compoundedannually.
Property taxes in a particular district are 2% of thepurchase price of a home every year. If you just purchased a $150,000 home, what is the present value ofall the future property tax payments? Assume that thehouse remains worth $150,000 forever, property taxrates never change, and a 4% interest rate is used fordiscounting
a) Suppose you put $350 into a bank account today. Interest is paid annually and the annual interest rate is 6 percent. What is the future value of the $350 after 4 years? b) Suppose you are deciding whether to buy a particular bond from your local municipality. If you buy the bond and hold it for 4 years, then at that time you will receive a payment of $10,000. Assume the interest rateis6percent. Underwhatcircumstanceswillyoubuythebond?Meaninguptowhatpriceareyou willing to pay.
SHOW SOLUTIONS AND WRITE NEATLY THE FORMULA COMPOUND INTEREST What nominal rate compunded monthly will yiled an effective interest rate of 5.78% in 2 decimal places. INPUT the % sign
9. In how many years will $1,500 yield an interest of 5200 at 2% simple interest?
2. You decide to lend your sister, who has never defaulted on a loan (ie. ρd =0), $1000 for one year. At the end of the year, she pays you $1050. What is the nominal interest rate you and your sister agreed upon? 2% 3% 4% 5%
Exercise 2.3 at pg24: Say you barrowed $10,000 from a bank at 12% interest rate per year for aperiod of 10 years. How much will you have to pay back after 10 years, ifa. The bank charged you simple interest? b. The bank charged you compound interest?
2. Assume a bond with the following characteristics: face value = $1000; maturity = 5 years; N yearly coupon payments = $100. a. If the current price of this bond is $850, state what the formula is to calculate the bond's yield to maturity and state the range of interest rates where the yield to maturity should fall b. If you purchased this bond at face value and held it for 1 year, when you resold it for $850, what is the bond's rate of return?