Consider an overlapping generations model in which individuals live for two periods. Assume an individual's first period endowment is y₁ = 50. The present value of wealth is 120 and the interest rate r = 12%. Compute the value of the second period endowment.

Q: You currently have a $4,500 balance on your credit card that you were planning to repay in 24 equal…

A: Interest is installment from a borrower or store taking monetary organization to a loan specialist…

Q: How does the credit card company calculate the interest payment?

A: The credit card has been an important tool to increase the purchasing power. This facility has…

Q: Why would a bank lending officer be interested in thecash flow statement of a company that is…

A: Cash flow refers to the quantity of cash or cash-equivalent that a corporation gets or expends as…

Q: Describe the process of Borrowing with Credit Cards?

A: The credit card has been an important tool to increase the purchasing power. This facility has…

Q: Other than lenders, who else might use your credit score and why?

A: Credit decisions are made by lenders. Credit reporting agencies sell credit reports on their…

Q: Why should you talk to your banker before beginning to look for a home? to get a building inspector…

A: Although looking for a home can be exciting and enjoyable, serious homebuyers should begin their…

Q: Carson used $800 000 of their savings to open a coffee shop. The savings account paid 2% interest.…

A: We know that the economic profit is the difference between the total sales revenue of output and the…

Q: Why is it important to review your bank statement each month?

A: A bank statement refers to a type document that summarizes all of the transactions in a bank account…

Q: describe something you can do to increase your savings for retirement.

A: Retirement: It is the point of time where someone stops working.

Q: What techniques or approaches can be used to achievemass customization in practice?

A: Media would be the technique for customization.Through media such as newspaper,television and…

Q: The advantage of a loan is that: its transaction costs are low. it can be tailored to the needs of…

A: Loan: A loan is a sum of money borrowed from a lender with the agreement that it will be repaid,…

Q: PAYMENT HISTORY,CAPACITY,LENGTH OF CREDIT,NEW CREDIT and MIX OF CREDIT  how do the above factors…

A: Payment History, Capacity, Length Of Credit, New Credit and Mix of Credit are some of the most…

Q: Calculate Savings rate when income is $22000 and the APS is 0.48

A: APS is the average propensity to save. It is the ratio of savings and income.

Q: How do you build housing in wealthy neighborhoods?

A: It's generally not feasible because of the value of the land. In wealthy areas, land is expensive…

Q: You opened a savings yesterday by depositing $10,000. You would like to be able to withdraw $2,000…

A: The amount that the lender charges the borrower over and beyond the principal amount is referred to…

Q: a) what is the monthly payment? b) what are the details of each monthly payment ? DEVELOP A PAYMENT…

A: Financing through a loan is a way for individuals or businesses to borrow money from a lender, such…

Q: Does IRS have my direct deposit info?

A: IRS stands for Internal Revenue Service which represents the federal government's revenue services,…

Q: Discretionary and Essential Expenses

A: Expenses of the firms are the major and most important part of a business firm or a company. The…

Q: Discuss credit card safety and precautions?

A: A credit card is a plastic card issued by a financial institution, typically a bank, that allows the…

Q: On November 4, you get a boat loan.  Your first payment is due December 4.  You write out your check…

A: TVM refers to the concept that a sum of money is value more now than the same sum will be at a…

Q: What is the cheapest loan?

A: A loan is the lending of money by an individual or a group to another individual or a firm, with an…

Q: Importance of saving money

A: Money: It refers to the cash which is available to the people. Money can be used for buying goods…

Q: Write the different loan terms?

A: A loan is when one or more people, organisations, or other institutions lend money to other persons,…

Q: How Do You Manage Your Credit Card Debt?

A: Credit cards have become a everyday part of our lives and is convenient to use. It is often, that we…

Q: What are other ways to invest in Real estate? Are they long term or short term?

A: Real estate refers to land and any physical property or structures that are permanently attached to…

Q: If you put your $100 into a saving account which earns 5% interest, how long does it take for your…

A: Given information: Amount kept in saving account = $100 Interest rate = 5%

Q: credit?

A: Credit report consist of current and past information regarding the credits that an individual hold.…

Q: How to convert daily interest rate into monthly interest rate?

A: Calculating the annual equivalent of a daily charge or per diem interest, or compounding annual…

Q: What should you do before you start looking at homes to buy? Spend everything you earn. Take out as…

A: A credit rating is a metric that assesses a person's or a company's potential to pay back a debt…

Q: You can improve or damage your credit history with a credit card. O True O False

A: The economics as a study is based upon the idea that the resources which are present with each…

Q: Explain the content and purpose of a credit report?

A: A credit report is a detailed summary of a person's credit history and financial behavior. It…

Q: Automobile repair shops typically recom- mend that their customers change their oil and oil filter…

A: Total miles driven in a year = 52000 Filter change cost = $31

Q: recommendation on how to influence Malaysians to use Islamic credit cards.

A: ISLAMIC INVESTMENT MARKETS: 1. ISLAMIC MONEY MARKET: The Islamic currency market was presented by…

Q: Name one potential benefit of using credit cards?

A: A credit card is a payment card that allows the cardholder to borrow funds from a bank or financial…

Q: What is the Deferred Savings Plan?

A: A  deferred savings plan is a plan  which allows the taxpayer to pay money in  the plan and  then…

Q: Balance of payment.

A: International commerce enables governments to open new markets for goods and services that would…

Q: why do credit cards charge higher interest than home and car loans? please help me with this…

A: A credit card is a type of payment card that enables the cardholder to borrow money from a bank or…

Q: In 2017, the productivity level of both Germany and the US was $ 72 per hour. Germany's productivity…

A: Productivity indicates the efficiency of inputs used in a production process. It measures the ratio…

Q: what is Gross Savings and how is it calculated?

A: Gross saving consists of savings of household sector, public sector and private corporate sector.…

Q: When does the money have time value?

A: The concept of the time value of money is based on time preferences and the fact that it can be…

Q: An open mortgage can be paid off in part or full with a reduced penalty. A) True B) False

A: In a market of loanable funds or mortgages, there are different forms of investment for different…

Q: How much should you put into 6% saving account in order to have 100,000 in five years?

A: *Answer: