Changes

because you lost the chance to use that money for your own benefit.

because you lost the chance to use that money for your own benefit.

'''2. Suppose I loaned you $1000 today, and interest rates are 5% per year (compounded annually), and you repaid the loan plus interest in 2 years, then what is the total you would pay to satisfy this debt?'''

'''2. Suppose I loaned you $1000 today, and interest rates are 5% per year (compounded annually), and you repaid the loan plus interest in 2 years, then what is the total you would pay to satisfy this debt?'''$1100

'''3. Review: is the cost of the bus for a trip to D.C. a "fixed cost" or a "variable cost"? Explain, assuming for the purpose of this question that one and only one bus can be used (in reality, we may have several buses).'''the cost of the buses the next call us because we cannot get to Washington D.C. without it.

'''3. Review: is the cost of the bus for a trip to D.C. a "fixed cost" or a "variable cost"? Explain, assuming for the purpose of this question that one and only one bus can be used (in reality, we may have several buses).'''the cost of the buses the next call us because we cannot get to Washington D.C. without it.

'''4. Which concept in Economics do you think is the best self-motivator, which you might use to achieve more?'''it is most likely competition or profit to both are great motivators. Competition people will to win and profit is the reward.

'''4. Which concept in Economics do you think is the best self-motivator, which you might use to achieve more?'''it is most likely competition or profit to both are great motivators. Competition people will to win and profit is the reward.

'''5. Suppose I will pay you $1000 in two years, and the interest rate is 10% per year, compounded annually. How much should you pay me today to receive $1000 in two years? Show your work.'''

'''5. Suppose I will pay you $1000 in two years, and the interest rate is 10% per year, compounded annually. How much should you pay me today to receive $1000 in two years? Show your work.'''if the interest rate is 10 percent per year then it would be $100 per year then after two years you would need to pay me $1200

'''6. Pick another question from the midterm exam that you answered incorrectly, and explain the correct answer.'''

'''6. Pick another question from the midterm exam that you answered incorrectly, and explain the correct answer.'''