Business, 04.04.2020 08:32 kritalewis
Three students have each saved $1,000. Each has an investment opportunity in which he or she can invest up to $2,000. Here are the rates of return on the students’ investment projects:
StudentReturn(Percent)Harry5Ron8Her mione20
Assume borrowing and lending is prohibited, so each student uses only personal saving to finance his or her own investment project.
Complete the following table with how much each student will have a year later when the project pays its return.
StudentMoney a Year Later(Dollars)HarryRonHermione
Now suppose their school opens up a market for loanable funds in which students can borrow and lend among themselves at an interest rate  .
A student would choose to be a borrower in this market if his or her expected rate of return is ___(Less or Greater) than  .
Suppose the interest rate is 7 percent.
Among these three students, the quantity of loanable funds supplied would be $, and quantity demanded would be $
Now suppose the interest rate is 10 percent.
Among these three students, the quantity of loanable funds supplied would be $, and quantity demanded would be$
At an interest rate of , the loanable funds market among these three students would be in equilibrium. At this interest rate,(Harry, Hermione, Ron, Ron and Harry, Hermione and Ron) would want to borrow, and (Harry, Hermione, Ron, Ron and Harry, Hermione and Ron) would want to lend.
Suppose the interest rate is at the equilibrium rate.
Complete the following table with how much each student will have a year later after the investment projects pay their return and loans have been repaid.
StudentMoney a Year Later(Dollars)HarryRonHermione
True or False: Only borrowers are made better off, and lenders are made worse off.
a. True
b. False
Answers: 1
Business, 22.06.2019 03:00, AllyJungkookie
In the supply-and-demand schedule shown above, at the lowest price of $50, producers supply music players and consumers demand music players.
Answers: 2
Business, 22.06.2019 12:50, 22iungj
Salaries are $4,500 per week for five working days and are paid weekly at the end of the day fridays. the end of the month falls on a thursday. the accountant for dayton company made the appropriate accrual adjustment and posted it to the ledger. the balance of salaries payable, as shown on the adjusted trial balance, will be a (assume that there was no beginning balance in the salaries payable account.)
Answers: 1
Business, 22.06.2019 22:30, jyworthy
Ski powder resort ends its fiscal year on april 30. the business adjusts its accounts monthly, but closes them only at year-end (april 30). the resort's busy season is from december 1 through march 31. adrian pride, the resort's chief financial officer, the museums a close watch on lift ticket revenue and cash. the balances of these accounts at the end of each of the last five months are as follows:
Answers: 3
Business, 22.06.2019 23:30, frankgore8496
What are consequences of rapid inflation? (select all that apply.) savings accounts become less desirable because interest earned is lower than inflation individual purchasing power increases, which results in an increase in demand. individual purchasing power decreases, which results in a decrease in demand. people postpone purchasing expensive items, such as homes, until prices drop.
Answers: 1
Three students have each saved $1,000. Each has an investment opportunity in which he or she can inv...
Mathematics, 16.04.2020 11:37
Mathematics, 16.04.2020 11:37
English, 16.04.2020 11:38
Arts, 16.04.2020 11:38
English, 16.04.2020 11:38