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6d. Your daughter is getting married in Italy in one year and you have to pay for the wedding in os (Professor Yezer actually had to do with this problem) 3/4 6e. You own a horse named Pokey who is running in a stakes race where the prize for winning is S10,000. The prizes for second and third are $3,000 and $1,000. Unfortunately 10 horses have entered the race 7a. Han can purchase a new tractor for $100,000. I will cost $10,000 per year to operate and after 3 years she can sel it for $50,000. The tractor will raise the value of her output of corn by $40,000. If she must pay 5% interest on the bank loan to purchase the tractor, what should she do? (use a calculator) 7b What if the FED raises interest rates so that Han must pay 10% on her bank loan? 7c. Explain the effect of interest rates on Han's decision in your own words 8a. Home mortgages have at least two features. One is the note rate, which is the annual interest rate paid on the balance outstanding and the other is "discount points" which are up-front payments to the mortgage broker. Why would anyone pay points? Paying discount points lowers the note rate! Consider the following example. Bank of Amerika offers a 30 year fixed rate