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7. An individual has an income of $35,000 in period 0 and $40,000 in period 1. The market interest rate is 8% and there is
7. An individual has an income of $35,000 in period 0 and $40,000 in period 1. The market interest rate is 8% and there is an investment opportunity that costs $10,000 in period 0 that is worth $11,000 in period 1. What is the maximum possible consumption in period 0 if the individual makes the investment and consumes $50,000 in period 1? a. $25,925.93 b. $26,667.14 c. $35,925.93 d. $36,667.14
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