Solve the Problem Suppose That Wages Are Directly Related to Housing Values

question 114

Multiple Choice

Solve the problem.
-Part of the Housing Price Index for 1999 is given below: $$\begin{array} { l | c | c | c | c } \text { City } & \text { Palo Alto, CA } & \text { Sioux City, IA } & \text { Boston, MA } & \text { Spokane, WA } \\\hline \text { Index } & 365 & 47 & 182 & 78\end{array}$$ Suppose that wages are directly related to housing values. If the hourly wage for a job is $14.81 per hour in Spokane,
What would the job pay in Sioux City?

• A)$24.58
• B)$8.92
• C)$5.89
• D)$9.77

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Definitions:

Available-for-Sale Debt Securities

Financial assets acquired primarily for selling in the short term but may be held for a longer period, reported at fair market value on balance sheets.

Premiums

Additional amounts paid over the normal cost or face value, often relating to insurance costs or bond prices.

Amortized

The gradual reduction of a debt over a period of time through regular payments that cover both principal and interest.

Available-for-Sale Securities

Financial instruments that are not classified as held-for-trading or held-to-maturity, marked to market for financial reporting purposes.