What kristy select money today or wait to get larger prize

Assignment Help Macroeconomics

Reference no: EM133537488

Problem: Kristy has won a prize. She can accept the amount of $40,000 today or wait 4 years and receive $43,400. She does not know what to do. There are three expected interest rates, compounding monthly, 1.75%, or 2% or 2.25% that economists are predicting for this time period. What should Kristy select, the money today or wait to get the larger prize in 4 years?

Reference no: EM133537488

Questions Cloud

What are strategies that one can use to help manage stress : What should they do to increase their happiness? What are some strategies that one can use to help manage stress and increase happiness.

What must be her marginal propensity to save : What must be her marginal propensity to save? Based on the information in part (1), calculate the tax multiplier in this economy.

Explain the hawthorne effect : Explain the preference models of justices across all cultures. Explain the Hawthorne effect.

How would you help her advocate at the various systemic : How would you help her advocate at the various systemic levels described in the advocacy competencies? What would be your goals in this action and advocacy plan

What kristy select money today or wait to get larger prize : Kristy has won a prize. She can accept the amount of $40,000 today. What should Kristy select, the money today or wait to get the larger prize in 4 years?

What was fluid and natural for you in this role-play : What was fluid and natural for you in this role-play? What challenges were you aware of in this role-play?

Describe the uneven brain development in teenagers : Describe the uneven brain development in teenager's. What impact does this have on decision-making and risk taking?

Draw labor supply curve for substitution effect dominates : Draw the labor supply curve for when (i) substitution effect dominates (ii) income effect dominates (Make sure you label the axes).

What role does the general public expect the government : analyze the document's purpose and audience. Who, for example, is the CDC's audience? What are the CDC's beliefs about ADHD, and how does the CDC's

User Account

All Pages