Question
Three students have saved $1,000 each, and they each have an investment opportunity in which they can invest up to $2,000 and earn the following
Three students have saved $1,000 each, and they each have an investment opportunity in which they can invest up to $2,000 and earn the following rates of return:Susan's rate of return is 5%; Bill's rate of return is 9%; Mario's rate of return is 15%.
If each person invests their $1,000 in their own opportunity then at the end of one year Susan will have $_____, Bill will have $_____, and Mario will have $______.
Susan would be willing to lend her $1,000 to one of the others as long as the interest rate she would be paid is at least____%.
Suppose the equilibrium interest rate is 9%.In this case,______ will choose to lend their $1,000 and_____will choose to borrow $1,000.(Enter a name).
Given the possibility of borrowing or lending, at the end of one year, Susan will have $_____, Bill will have $_____, and Mario will have $_____.
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