Three students have each saved $1,000. Each has an investment opportunity in which he or she can invest up to $2,000. Here are the rates of return on the students’ investment projects: Student Return
(Percent)
Hubert 4
Manuel 7
Poornima 15
Assume borrowing and lending is prohibited, so each student uses only personal saving to finance his or her own investment project.
Complete the following table with how much each student will have a year later when the project pays its return.
Student Money a Year Later
(Dollars)
Hubert
Manuel
Poornima
Now suppose their school opens up a market for loanable funds in which students can borrow and lend among themselves at an interest rate r.
A student would choose to be a lender in this market if his or her expected rate of return is than r.
Suppose the interest rate is 6 percent.
Among these three students, the quantity of loanable funds supplied would be
$
, and quantity demanded would be
$
.
Now suppose the interest rate is 12 percent.
Among these three students, the quantity of loanable funds supplied would be
$
, and quantity demanded would be
$
.
At an interest rate of
%
, the loanable funds market among these three students would be in equilibrium. At this interest rate, would want to borrow, and would want to lend.
Suppose the interest rate is at the equilibrium rate.
Complete the following table with how much each student will have a year later after the investment projects pay their return and loans have been repaid.
Student Money a Year Later
(Dollars)
Hubert
Manuel
Poornima
True or False: Only lenders are made better off, and borrowers are made worse off.

True
False

hi there, i would say your answer is:

b. there is a fixed quantity of resources and technology available.

hope that : )

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.