Concept explainers
To explain:
The way person’s employment and household situation influence the selection of housing.
Introduction: Housing refers to the infrastructure or a building where a family or an individual lives. It is among one of the necessities of people and there the people should able to meet the federal regulations. Housing includes huge amount to be involved which makes it as an investment.
Answer to Problem 9.1PQ1
Solution:
The person’s employment and household situation is directly related to the selection of housing which implies greater house selection for greater employment level and greater household needs.
Explanation of Solution
An employed person with greater household needs would require greater housing facility.
- The increase in employment level would imply greater level of income, and the greater level of income would mean a person’s greater ability to buy or select the bigger house.
- The greater amount of household need would mean greater expenses and more number of people in a family which would require bigger space to live, so greater or bigger home would be selected.
Thus, the greater employment level and greater household needs would influence the selection of greater house selection and vice versa.
Want to see more full solutions like this?
Chapter 9 Solutions
PERSONAL FINANCE >LL< W CONNECT
- 3 years ago, you invested $9,200. In 3 years, you expect to have $14,167. If you expect to earn the same annual return after 3 years from today as the annual return implied from the past and expected values given in the problem, then in how many years from today do you expect to have $28,798?arrow_forwardPlease Don't use Ai solutionarrow_forwardEnds Feb 2 Discuss and explain in detail the "Purpose of Financial Analysis" as well as the two main way we use Financial Ratios to do this.arrow_forward
- Nikes annual balance sheet and income statement for 2022-2023 and 2024arrow_forwardWhat is the value at the end of year 3 of a perpetual stream of $70,000 semi-annual payments that begins at the end of year 7? The APR is 12% compounded quarterly.arrow_forwardFirm A must pay $258,000 to firm B in 10 years. The discount rate is 16.44 percent per year. What is the present value of the cash flow associated with this arrangement for firm A? -I got the answer of 56331.87773=56332 (rounded to the nearest dollar), but it says incorrect.arrow_forward
- Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
- Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage LearningCorporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education