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Jean recently boughta buildingfor $10 million financed entirely througha 20-year bank loan. The interestrateontheloanis3percentperyear.Afterbuyingthebuilding,Jeanwinsa$10millionlottery. ShouldJeanpayoffthebankloanrightaway?Describethedecisionqualitatively(usingtheconceptof economicnet benefit).No numerical calculationsarenecessary.
- Jean recently boughta buildingfor $10 million financed entirely througha 20-year bank loan. The interestrateontheloanis3percentperyear.Afterbuyingthebuilding,Jeanwinsa$10millionlottery. ShouldJeanpayoffthebankloanrightaway?Describethedecisionqualitatively(usingtheconceptof economicnet benefit).No numerical calculationsarenecessary.
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Introduction to Econometrics
Authors: James H. Stock, Mark W. Watson
3rd edition
133595420, 978-0138009007, 138009007, 978-0133486872, 133486877, 978-0133595420
