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93. Based on the diagram below answer each of the following questions. a)Find the market rate of interest. b)What is initial net worth of the

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93. Based on the diagram below answer each of the following questions. a)Find the market rate of interest. b)What is initial net worth of the individual if no investment is undertaken? c)If the individual decides to invest all of his wealth, how much will he have for tomorrow? d) What is the optimal amount of investment? e)How much will the investment yield for tomorrow? f) Find the rate of retum on this investment. g)If, after making the optimal investment, the individual decides to consume nothing today and everything tomorrow, what is the maximum amount that can be consumed tomorrow? h) Find the NPV of the investment. i) How much does this individual wish to consume today? j)Does the individual need to borrow or lend (choose one) to accomplish this? k)How much? 1)How much will the individual consume tomorrow? 93. Based on the diagram below answer each of the following questions. a)Find the market rate of interest. b)What is initial net worth of the individual if no investment is undertaken? c)If the individual decides to invest all of his wealth, how much will he have for tomorrow? d) What is the optimal amount of investment? e)How much will the investment yield for tomorrow? f) Find the rate of retum on this investment. g)If, after making the optimal investment, the individual decides to consume nothing today and everything tomorrow, what is the maximum amount that can be consumed tomorrow? h) Find the NPV of the investment. i) How much does this individual wish to consume today? j)Does the individual need to borrow or lend (choose one) to accomplish this? k)How much? 1)How much will the individual consume tomorrow

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