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 returnon the students' investment projects:ReturnStudent(Percent)Antonio4DmitriFrances15Assume 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.Money a Year LaterStudent(Dollars)AntonioDmitriFrances Now suppose their school opens up a market for loanable funds in which students can borrow and lend among themselves at an interest rate r.A student would choose to be a borrower in this market if his or her expected rate of return isv than r.Suppose the interest rate is 6 percent.Among these three students, the quantity of loanable funds supplied would be s, and quantity demanded would be $1.Now suppose the interest rate is 12 percent.Among these three students, the quantity of loanable funds supplied would be s, and quantity demanded would be $1.At an interest rate of%, the loanable funds market among these three students would be in equilibrium. At this interest rate,v would want to borrow, andv 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 beenrepaid.Money a Year LaterStudent(Dollars)AntonioDmitriFrancesTrue or False: Both borrowers and lenders are made better off.

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

Answered: Complete the following table with how…

Complete the following table with how much each student will have a year later when the project pays its return. Money a Year Later Student (Dollars) Antonio Dmitri Frances

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: A newspaper reports that in the last 5 years, prices have increased a total of 50%. This is…

A: Given the time = 5 years Price increased to = 50%

Q: eBook A father is now planning a savings program to put his daughter through college. She is 13,…

A: Average rate of inflation is 5% annually. So if she enrolls in a 4 year program after 5 years, total…

Q: The Premier Car Title Loan Company makes emergency loans of up to $500 for one month for a fee of 2%…

A: The values given are:- Maximum emergency loan for a month period = $500 Interest on loan = 2% Person…

Q: Show the steps of your calculation O For example, question: a person deposits $500 to bank now, if…

A: The objective of this question is to calculate the future value of a deposit made today, given the…

Q: f(k) (п + d) s'y sy k" Capital per head

A: Steady state is the situation where growth of population , Growth of income and growth of capital…

Q: 3. Lesly Pacas borrows 300,000 pesos for 90 days at 12% per year to remodel her hair salon. She…

A: Given: Amount: 300000 pesos Period=90 days Interest rate at present=12% Interest rate a decade ago…

Q: You borrow $5000 from a family member and agree to pay it back in 5 months. Because you are part of…

A: The interest rate is the percentage of a loaned sum that a lender charges the borrower as interest,…

Q: Suppose you start saving for retirement when you are 45 years old. You invest $4,000 the first year…

Q: How much must be invested now at 8% interest to produce $5000 at the end of every year for 10 years.

A: The rate of interest is the indication of the fraction of the deposited money which the depositor…

Q: Uing the interest table, detarmane the nerest ate for the fotowing loan scenario Nate nd off yiur…

A: Given: A=1252 Amount at year 0=5000 To find: rate of interest

Q: Engr. Odon is paying a loan five thousand pesos 10% quarterly for 3 years. If the payment is to…

A: The worth of a current asset at a future date based on an estimated rate of growth is known as…

Q: The End of Years cash flow are expected to be P10,000 for second year, P20,000 for the third year,…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: Good day i would like to ask what is the meaning & equivalent FORMULA of this symbols in engineering…

A: Engineering economics: It refers to the economics that help in the making the decision more feasible…

Q: Required information The Premier Car Title Loan Company makes emergency loans of up to $500 for one…

A: Nominal interest rate is the interest rate which is calculated without taking into account the…

Q: A man made a loan of $100 to be repaid with $105 at the end of one month. What was the annual…

A: Simple interest refers to the interest which is charged upon a loan. This is the most simplest…

Q: A company is planning to spend $100,000 now for possible replacement of the heating and cooling…

Q: Engr. Odon is paying a load five thousand pesos 4% quarterly for 3 years. If the payment is to start…

A: Given, Loan amount = 5,000 Pesos Time (n) = 3 years Interest rate (R)= 4% compounded quarterly…

Q: Engineering Economy Question Suppose you have a growth rate (j=5%) Now, initially the fixed cash…

A: Annuity involves a series of payments which is made at equal intervals like at the beginning or end…

Q: Q2\ A company is planning to purchase a new equipment to increase the production and revenues. The…

A: The cost of equipment = 451105 Installation cost = 17% Total cost of equipment = 451105 + 451105…

Q: A milling machine can be bought with end of every quarter for 16 quarters. machine. a downpayment of…

A: Answer; 358,732.10 is the required answer.

Q: None

Q: Maria invested 20,000 Pesos in a savings account 10 years later she withdrew all her savings…

A: Compound interest is the interest on a loan or deposit calculated based on both the initial…

Q: f you loan your friend $1500 today and she gives you $2000 back in four years what is your annual…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: A business generates $10,000 per year for 10 years starting year 2. At i = 10% per year, how much…

A: In economics, the present value refers to the current value of a future stream of cash flow. Net…

Q: A piece of machinery can be bought for Php 10,000.00 cash, or for Php2,000.00 down and payments of…

A: Cost of Machine = 10000 Down Payment = 2000 PMT = 750 per year n = 15 Years

Q: Find the simple interest. Principal Rate Time in Months $10000 4% 3

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: interest rate,

A: ‘Borrowings’ are the done, in which one party take some money from other in respect of ‘interest…

Q: deposits at simple interest. (i) £300 borrowed for 5 years at 8% p.a. (ii) £1000 invested for 4…

A: The formula used to calculate Simple Interest is : Simple Interest = P x R x T100 Answer (i) P =…

Q: The sum of $1000 is deposited in a bank and left there to earn interest rate for 10 years. if the…

A: Amount deposited in bank (PV) = $1000 Interest rate earn on depsoted money (r ) = 10% Total time…

Q: Liam borrowed money from a bank worth P15,000.00 on January 11, 2020. They agreed on a simple…

A: Given: The principal amount is = P15,000 The time period is from = January 11, 2020, to March 10,…

Q: Example: Suppose $1500 is deposited at the end of each year for the next 6 years in an account…

A: The amount of annuity (A) = $1500 Total number of years (n) = 6 Interest rate ( r ) = 8%

Q: None

A: Let's go through a detailed step-by-step explanation of the workings and calculations for the…

Q: If your grandfather had deposited the money with a monthly interest of 1% instead of 12% per year,…

A: Effective annual rate (EAR) = [1 + (r / m)]m - 1, where r: Stated annual nominal rate and m: Number…

Q: Calculate the future equivalent at the end of 2012 at 8% per year, of the following series of cash…

A: Futures Equivalent: The number of futures contracts required to match the risk profile of an options…

Q: How much time it take for an amount of Rs.450 to yield Rs.81 as interest at 4.5% per annum of simple…

A: A simple interest computes the interest on savings or loans without compounding. It is simple to…

Q: After how many years will Nicole's investment triple if invested at 10% per anmum, net of…

A: Interest is the amount paid in excess of the principal amount by the borrower to the lender. The…

Q: Mr.Samuel wants to get $10 millions in the future by saving $4 millions from now. By data, bank with…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: A piece of property is purchased 10 000 pesos and yields a 1 000 pesos yearly profit. If the…

A: GIVEN A piece of property is purchased 10 000 pesos and yields a 1000 pesos yearly profit. If…

Question

100%

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:
Return
Student
(Percent)
Antonio
4
Dmitri
Frances
15
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.
Money a Year Later
Student
(Dollars)
Antonio
Dmitri
Frances

Now suppose their school opens up a market for loanable funds in which students can borrow and lend among themselves at an interest rate r.
A student would choose to be a borrower in this market if his or her expected rate of return is
v than r.
Suppose the interest rate is 6 percent.
Among these three students, the quantity of loanable funds supplied would be s
, and quantity demanded would be $
1.
Now suppose the interest rate is 12 percent.
Among these three students, the quantity of loanable funds supplied would be s
, and quantity demanded would be $
1.
At an interest rate of
%, the loanable funds market among these three students would be in equilibrium. At this interest rate,
v would want to borrow, and
v 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.
Money a Year Later
Student
(Dollars)
Antonio
Dmitri
Frances
True or False: Both borrowers and lenders are made better off.

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 with 2 images

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

☐ Your company plans to buy a new vehicle, with a loan payment of $400 per month for 60 months. You estimate that the cost of gas will be $50 in the first month and increase by 1% each month. What is the present equivalent of the loan and gas costs for the vehicle over the 60 months of the loan, assuming an interest rate of 8%? Typed numeric answer will be automatically saved.
Illustrate the procedure used to convert the units into equivalent annual units?
Mrs. Reyes accumulated 4,000 shares of company stock, in the manufacturing company where have worked for 20 years. One year ago, each of stock was worth 50 pesos. The company has offered to buy back Mrs. Reyes shares for 215,500 pesos. At what interest rate would the company's offer be equivalent to the worth of the stock last year?
An apartment has an annual rent of 24,000 NIS and a contract that has to be renewed every 2 years. Consider an interest rate of 7% per year and answer the following: a. If you want to rent the apartment for 6 years and pay now the total amount, how much should you pay? b. If the contract cost increases by 25% every 2-year renewal, how much will the new total amount change?
Only typed answer
follow instructions. dont forget to do the diagram
2.........3 decimal places for the final answer
A certain annuity pay P10k every 6 months. If the present value of the annuity is P150k and the accumulated amount is P200k, determine the nominal rate?
! Pls answer all ! bartleby 3 max question How much is the exact simple interest of P 6000 from February 28, 2000 to December 31, 2001with an interest rate of 8 %? How long in days should an amount of P 35000 with a 5 % exact simple interest would become P35556?
Jana invested a hundred thousand pesos in an account now. After eight years, she withdraws the principal. The remaining amount is then left for another eight years. If the interest is 5% semi-annually, what will be the withdrawable amount at the end of the sixteenth year?
If you had $1000 now and invested it at 4%, how much would it be worth 12 years from now?
Please answer it without Excel , And also don't use AI. Try handwritten solution or typed