Suppose that you are considering a loan in which you will borrow $275,000 using a 30-year loan. the loan has an annual interest rate of 15% with monthly payments and monthly compounding. suppose also that the lender is charging you a 0.75% origination fee, you are paying 3 points in order to get the 15% interest rate, and the loan has $675 in third-party closing costs associated with it.
a. what will the effective borrowing cost be for this loan if you make all of the scheduled payment?
b. what will the lender’s yield be for this loan if you make all of the scheduled payments?
c. what will the effective borrowing cost be for this loan if you pay off the loan at the end of the 4th year?

Who is better at multi-tasking? in business, employees are often asked to perform a complex task when their atten-tion is divided (i.e., multi-tasking). human factors (may 2014) published a study designed to determine whether video game players are better than non–video game play-ers at multi-tasking. each in a sample of 60 college stu-dents was classified as a video game player or a non-player. participants entered a street crossing simulator and were asked to cross a busy street at an unsigned intersec-tion. the simulator was designed to have cars traveling at various high rates of speed in both directions. during the crossing, the students also performed a memory task as a distraction. two variables were measured for each student: (1) a street crossing performance score (measured out of 100 points) and (2) a memory task score (measured out of 20 points). the researchers found no differences in either the street crossing performance or memory task score of video game players and non-gamers. “these results,” say the researchers, “suggest that action video game players [and non-gamers] are equally susceptible to the costs of dividing attention in a complex task”

Which of the following is a function performed by market prices? a. market prices communicate information to buyers and sellers. b. market prices coordinate the decisions of buyers and sellers. c. market prices motivate entrepreneurs to produce those products that are currently most desired relative to their costs of production. d. all of the above are functions performed by market prices.

Suppose that with a budget of $110, deborah spends $66 on sushi and $44 on bagels when sushi costs $2 per piece and bagels cost $2 per bagel. but then, the price of bagels falls to $1 per bagel.