A 22-year old college graduate just got a job in Nashville. She is considering buying a house with a $240, 000 mortgage. The APR is 14% compounded monthly for her monthly mortgage payments on a 25-year fixed rate loan. If she can get her FICO score up to 750, the APR drops to 13.6%. How much in interest cost will she save over the life of the loan assuming she can increase her FICO score to 750?

Your company is starting a new r& d initiative: a development of a new drug that dramatically reduces the addiction to smoking. the expert team estimates the probability of developing the drug succesfully at 60% and a chance of losing the investment of 40%. if the project is successful, your company would earn profits (after deducting the investment) of 9,000 (thousand usd). if the development is unsuccessful, the whole investment will be lost -1,000 (thousand usd). your company's risk preference is given by the expected utility function: u(x) v1000 +x, where x is the monetary outcome of a project. calculate the expected profit of the project . calculate the expected utility of the project . find the certainty equivalent of this r& d initiative . find the risk premium of this r& d initiative e is the company risk-averse, risk-loving or risk-neutral? why do you think so?