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Currently jack morris makes 85 000 per annum next year his

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Currently, Jack Morris makes $85, 000 per annum. Next year his income will be $108, 000. Jack is a big spender and he wants to consume $135, 000 a year. The equilibrium interest rate is 7 percent. What will be Jack's consumption potential next year if he consumes $135, 000 this year?

Reference no: EM13617583

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