Solved: If the interest rate is 5 what is the implicit rental price, Business Economics

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If the interest rate is 5 what is the implicit rental price

Suppose a company owns a warehouse that costs $500,000 and depreciates at $10,000 per year. If the interest rate is 5%, what is the implicit rental price of the warehouse?

$25,000
$10,000
$500
$35,000

If mortgage interest rates increase, we would expect the quantity demanded of housing to:

increase
decrease

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