You are planning to invest in fine wine. Each case costs $100 (at time 0), and you know from experience that the (future) value of a case of wine held fort

years is100t

fort1

. (Suppose that the value is100

for0

. Why do you think we make this assumption?) Wine is thus increasing in value over time. One case of wine is available to purchase, and the annual interest rate you can earn by keeping money in the bank is 10 percent.