Which of the following is correct? For every additional dollar in Lifetime_value, Incore is expected to increase by $0.042 For every additional dollar in Lifetime_value, Income is expected to decrease by $0.042 For every additional dollar in Income, Lifetime_value is expected to decrease by $0.042 For every additional dollar in Income, Lifetime_value ($) is expected to increase by $0.042

Calculate the equity each of these people has in his or her home: Fred just bought a house for 200,000 by putting 10 as a down payment and borrowing the rest from the bank. Freda bought a house for 150,000 in cash, but if she were to sell it now, it would sell for 250,000. Frank bought a house for 100,000. He put 20 down and borrowed the rest from the bank. However, the value of the house has now increased to 160,000 and he has paid off 20,000 of the bank loan.

What are some reasons why the investment strategy of a 30-year-old might differ flow the investment strategy of a 65-year-old?

What are some ways that someone looking for a loan might reassure a bank that is faced with imperfect information about whether the borrower will repay the loan?

Describe some buyers and some sellers in the market for U.S. dollars.

In an insurance system, would you expect each person to receive in benefits pretty much what they pay in premiums or is it just that the average benefits paid will equal the average premiums paid?

You open a 5-year CD for 1,000 that pays 2 interest, compounded annually. What is the value of that CD at the end of the five years?

A mortgage 105m is a loan that a person makes to purchase a house. Table 19.11 provides a list of the mortgage interest rate for several different years and the rate of inflation for each of those years. In which years would it have been better to be a person borrowing money from a bank to buy a home? In which years would it have been better to be a bank lending money?

How much money do you have to put into a bank account that pays 10% interest compounded annually to have 10,000 in ten years?