Fred wants a new pickup truck and has found a 2020 Silverado that he really likes for $45,000. He can finance through the dealer for ZERO percent interest, 60 months, payment of $750 per month. OR he can get a loan at his bank / credit union for 3.40% annually, 60 months, and if he pays cash to the dealer, he gets the truck for $40,000. Calculate the monthly RATE, the annual rate, and the Effective rate for the dealer financing based on the discounted amount of $40,000 at $750 per month. Also calculate total payments ($750*60). For the Bank financing, calculate the payment, the effective rate, and the total of payments on the $40,000 cash he will take to the dealer to get the $5000 discount.

Susie buys two goods - rounds of golf and massages. suppose that the price of a round of golf is $20, and the price of a massage is $30. in a typical week susie will play two rounds of golf, getting 20 units of satisfaction from the second round. she normally buys three massages each week, with the third giving her 30 units of satisfaction. if she were to buy a fourth massage in a week, it would give her 20 units of satisfaction. if the price of massages is reduced to $15, which of the following outcomes might we expect to occur? a) susie would leave her consumption choices unchanged because of diminishing marginal utility in the consumption of massages. b) susie would buy more massages and more rounds of golf, as predicted by the substituion effect. c) susie would buy more massages and fewer rounds of golf, as predicted by the substitution effect. d) susie would buy more massage and fewer rounds of golf, as predicted by income effect.