Question
The utility of consumption at time 1 and consumption at time 2 for Maria is represented by the following utility function: U(c 1 ,c 2
The utility of consumption at time 1 and consumption at time 2 for Maria is represented by the following utility function: U(c1,c2)=min{c1,c2}. Maria's endowment at time 1 is $7 thousand, while Maria's endowment at time 2 is $3 thousand. Maria faces a 20% interest rate between the two periods.
How much does Maria save in time 1 (in thousands)?
Round your answer to the first decimal point.
Please answer correct explain plz asap plz
Don't answer by pen paper plz
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Survey of Accounting
Authors: Carl S Warren
6th edition
978-113318912, 1133189121, 978-1133189121
