PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337117005
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 3FPE
Summary Introduction
To discuss: The relative attractiveness of moving.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Let's consider a bid-rent model. Assume that a person has to go to the central business district (CBD)
to work or to get the goods and services that the person wants. Each household may choose to live in
the CBD, 1 mile away from the CBD, or 2 miles away from the CBD. All houses are identical in their
features, except for location. A household may live in a motor home and move from one lot to another
with no cost. A one-man household must pay a rent to live in a certain lot. The person is employed and
completes one-round trip to the CBD every day, 15 days per month. We assume that this person earns
$30 per hour and can travel at an average speed of 15 miles per hour. We only consider the person's
time spent on working and commuting each day: that is, the person can reduce the time cost of
commuting by living closer to the CBD. Time saved from commuting can be used to work more and earn
more money. If this one-man household is currently living in a lot 2 miles away from the CBD, how…
Can someone give me their input on this question please.
Discuss housing affordability in general. When researching your response consider the following: personal income, housing prices, mortgage rates, nonmortgage expenses, and also personal/mental/social positives and negatives of owning vs renting.
Comparing payments and APRs of financing alternatives. Because of a job change, Finn McBryde has just relocated to the southeastern United States. He sold his furniture before he moved, so he’s now shopping for new furnishings. At a local furniture store, he’s found an assortment of couches, chairs, tables, and beds that he thinks would look great in his new two-bedroom apartment; the total cost for everything is $6,400.
Because of moving costs, Ben is a bit short of cash right now, so he’s decided to take out an installment loan for $6,400 to pay for the furniture. The furniture store offers to lend him the money for 48 months at an add-on interest rate of 6.5 percent. The credit union at Finn’s firm also offers to lend him the money—they’ll give him the loan at an interest rate of 6 percent simple, but only for a term of 24 months.
Compute the monthly payments for both of the loan offers. Show your work.
Determine the APR for both loans.
Which is more important: low…
Chapter 5 Solutions
PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
Knowledge Booster
Similar questions
- Answer your friend who claims that; c) population changes do have similar effects on house prices in large cities and rural areas in Japan.(according to table below) Do you agree/disagree with this statement,explain your reason.arrow_forwardCalculate the appreciation rate of each home. Show your work. Then, write at least two paragraphs that discuss which home you’d like to buy, based on the rate at which it will appreciate and its features. In paragraph 1, include each appreciation rate. Why do you think the appreciation rates are different for each home? Explain your reasoning. In paragraph 2, compare and contrast the features of the homes, based on what you would be looking for in a house. Be sure to state which home you would want to buy. (If you buy Home 1, you think that you will own it for 3.5 years, but if you buy Home 2, you will likely own it for 7.25 years. You’re unsure how long you might stay in Home 3, but you think it would be about 4.75 years.)arrow_forwardThe average Gross Salary you would need in order to live in the Sacramento area is lower than the national average. Which of the following would you need to live here?arrow_forward
- Why does a house broker usually recommend her clients the median house price in a community but not average price?arrow_forwardYou are trying to decide whether to take a job after you graduate or go onto graduate school. Consider the following questions as you make your decision. A. Which of these costs, for the most part, would be relevant (R), and which would be irrelevant (IR)? Cost of your Undergraduate education Salary with an undergraduate degree Salary with both an undergraduate degree and a graduate degree Rent Car Insurance Graduate school tuition and fees Food costs Moving expenses B. Which of these costs could have a differential amount that is relevant/irrelevant, depending upon the location and or policies of your new job?arrow_forwardWhich of the following is not related to Opportunity costs? a. Salary given up to start a business b. Rental Income given up when you live in a house you own. c. fixed costs to be incurred when you accept a special request from an existing client. d. None of the choicesarrow_forward
- An implication of the life cycle theory is that: Multiple Choice Households are planners whose actions extend beyond their current resources and pleasurable activities today to future needs and assets to meet them. Utility can be measured in money terms. Household spending decisions are based on the amount of income they earn currently. All of the choices are correct. None of the choices are correct.arrow_forwardAlthough the selection of housing is usually based on life situation and financial factors, we should also consider what we might have to give up. In this context, it is correct to say that: * One of the main advantages of owning a previously owned house is the fewer responsability for maintenance. One of the main advantages of renting an apartment is the pride of ownership. One of the main disadvantages of owning a manufactured home (mobile home) is to be more expensive than other ownership options. The lost earnings from interest on the money used for a down payment on a home is an important opportunity cost when we decide to buy a house or make a mortgage.arrow_forwardComparing payments and APRs of financing alternatives Because of a job change, Finn McBryde has just relocated to the southeastern United States. He sold his furniture before he moved, so he's now shopping for new furnishings. At a local furniture store, he's found an assortment of couches, chairs, tables, and beds that he thinks would look great in his new, two-bedroom apartment; the total cost for everything is $6,400. Because of moving costs, Finn is a bit short of cash right now, so he's decided to take out an installment loan for $6,400 to pay for the furniture. The furniture store offers to lend him the money for 48 months at an add-on interest rate of 8.5 percent. The credit union at Finn's firm offers to lend him the money - they'll give him the loan at a simple interest rate of 13 percent, but only for a term of 24 months. Compute the monthly payments for the loan from the furniture store. Round the answer to the nearest cent.________$ per month Compute the monthly…arrow_forward
- Activity 2 Instructions: Application of opportunity cost and variations of benefit and cost. 1. What are the opportunity costs of a student who decide to study college? 2. Show how cost-benefit analysis can be used in explaining the family size among poor households.arrow_forwardWhich of the following is not related to Opportunity costs? None of the choices O Rental Income given up when you live in a house you own. Salary given up to start a business O fixed costs to be incurred when you accept a special request from an existing client.arrow_forwardWhen designing a study on sharing economy, we have the following research hypotheses for Airbnb: H1: The main reason to use Airbnb’s services is to get to know the life of theinhabitants of a given country. H2: The consumer, having a choice of Airbnb and a hotel—assuming the sameprice—will choose Airbnb. H3: People who use Airbnb’s services most often are people under 30, on lowincomes, solo travellers. Prepare a fragment of the questionnaire (6 questions) that will verify the above hypotheses statements. Be sure to indicate the type of question (i.e. open ended, scale, matrix, rating, etc.)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College