How much to afford to pay for suitable interest rate
The annual income from a rented house is $12,000. The annual expenses are $3,000. If the house can be sold for $145,000 at the end of 10 years, how much could you afford to pay for it now, if you considered 18% to be a suitable interest rate?
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Suppose an industry has potential firms with identical technologies with TC = 200 + 2Q2. The demand curve in this industry is D(p) = 18 - ¼ p. What is the AC minimizing quantity for a single firm?
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If the house can be sold for $145,000 at the end of 10 years, how much could you afford to pay for it now, if you considered 18% to be a suitable interest rate?
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