Determine what would be the maximum interest rate

Assignment Help Econometrics

Reference no: EM13209531

Assume a life with only two periods. You earn $100 in the current period and $135 in the second period.

A. If the interest rate is 35%, what is the maximum you can spend in the current period?

B. If the interest rate was lower, you probably would be able to spend more than that. What would be the maximum interest rate that would allow you to spend $225 in the current period?

Reference no: EM13209531

Questions Cloud

Does price exceed average variable cost for firm : A purely competitive firm finds that the market price for its product is $30.00. It has a fixed cost of $100.00 and a variable cost of $15.00 per unit for the first 50 units and then $35.00 per unit for all successive units.Does price exceed avera..

Weaving the world together : You should only use information given in the passage. Do not give your personal opinion. Do not copy and paste materials taken directly from the passage

Explain dibenzalacetone is commonly used in sunscreens : Dibenzalacetone is commonly used in sunscreens. Suggest what properties are valuable in a compound for use as a sunscreen.

State symbol x represents a central atom : If the symbol X represents a central atom, Y represents outer atoms, and Z represents lone pairs on the central atom, the structure that could be abbreviated as XY2Z2.

Determine what would be the maximum interest rate : A. If the interest rate is 35%, what is the maximum you can spend in the current period B. If the interest rate was lower, you probably would be able to spend more than that. What would be the maximum interest rate that would allow you to spend $2..

State how many grams of cobalt metal will be deposited : How many grams of cobalt metal will be deposited when a solution of cobalt(II) chloride is electrolyzed with a current of 10. amperes for 109 mintues?

Understanding of american cold war history. : The essay is to be a critical book review Due to the broad expanse of American history that is available to us

What is present value of lifetime resource available to abby : A. If the interest rate is 15% for the time period for both borrowing and saving, what is the maximum she can borrow against her future income B. What is the present value of lifetime resources available to Abby

Explain the binding energy of titanium : Determine the lowest frequency of light (in Hz) required to remove an electron from a sample of Ti metal, if the binding energy of titanium

User Account

All Pages