Consider an adjustable rate mortgage of $90,000 with a maturity of 30 years and monthly payments. at the end of each year, the interest rate is adjusted to become two percentage points above the index. annual cap of 300 basis points (3%), and a lifetime cap of 500 basis points (5%). in the there is an first year the contract rate is 6%, with no teaser. in year two, the index rate is 8%. 9. what is the contract rate in year two? b.10% e.9% d. 11% 10. what monthly payment is called for in year two? a. $786 b. $795 c. $720 d. s648

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?