This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Homer has been saving to buy a new car in five years and expects that the car of his dreams will ... (Read 27 times)

jilianpiloj

  • Hero Member
  • *****
  • Posts: 521
on: Jun 29, 2018
Homer has been saving to buy a new car in five years and expects that the car of his dreams will cost 35,000.
 
  If the interest rate is 8 percent per year, how much money should Homer have in his bank account today in order to have enough money to buy the car in 5 years? A) 1,852.28
  B) 22,055.94
  C) 23,820.41
  D) 25,726.04

Question 2

If Bill's income increases from 80,000 per year to 91,000 per year and he consumes pickup trucks and lamb chops with his money, Bill's budget line shifts outward and the increase in income means he can consume more trucks and more lamb.
 
   Is this statement true or false? Briefly explain your answer.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

tjayeee

  • Sr. Member
  • ****
  • Posts: 329
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

The statement is true. The increase in Bill's income shifts his budget line outward and enables Bill to consume more trucks and more lamb chops.


jilianpiloj

  • Member
  • Posts: 521
Reply 2 on: Jun 29, 2018
Wow, this really help

atrochim

  • Member
  • Posts: 331
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

(a) The site of Zhoukoudian outside of Beijing, China, spans several hundred thousand years and (b) (a) The site of Zhoukoudian outside of Beijing, China, spans several hundred thousand years and (b)
The Upper Cave at Zhoukoudian yields ages of about 25,000 years for Homo sapiens. The Upper Cave at Zhoukoudian yields ages of about 25,000 years for Homo sapiens.
Cranial capacity has increased approximately fourfold over the last 3.5 million years of hominin evo Cranial capacity has increased approximately fourfold over the last 3.5 million years of hominin evo
Changes in Synaptic Density From Birth to Age 2 Synaptic connections increase throughout the first Changes in Synaptic Density From Birth to Age 2 Synaptic connections increase throughout the first
Correctly administering and interpreting an intelligence test is a skill that takes many years for ... Correctly administering and interpreting an intelligence test is a skill that takes many years for ...
Population age 65 and over and age 85 and over, selected years 1900-2008 and projected 2010-2050. Population age 65 and over and age 85 and over, selected years 1900-2008 and projected 2010-2050.
Video: Semidiscontinuous DNA replication

For a complete list of videos, visit our video library