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An investor is earning $15,000 this year (payable at the end of the year) but expects to be earning $60,000 next year (payable at the
An investor is earning $15,000 this year (payable at the end of the year) but expects to be earning $60,000 next year (payable at the end of the year). a. What is the maximum amount that the investor can consume today if the interest rate is 10 %? $63,223 b. If the investor decides to consume zero this year, how much could she consume next year
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