What would be max interest rate that would allow to spend

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Reference no: EM13209714

Assume a life with only two peroids. You van 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. Id the interest rater was lower, you probably would be able to spend more than that. What would be the max interest rate that would allow you to spend $225 in the current period

Reference no: EM13209714

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