3. Your income in Year 1 is R50 000, in Year 2 it is R100 000, in Year 3 it is R120 000, in Year 4 it is R150 000 and in Year 5 it is R110 000. a. What is your permanent income if the interest rate is 4%? b. If you consume your permanent income each year, how much will you save or borrow in each year?

3. Your income in Year 1 is R50 000, in Year 2 it is R100 000, in Year 3 it is R120 000, in Year 4 it is R150 000 and in Year 5 it is R110 000. a. What is your permanent income if the interest rate is 4%? b. If you consume your permanent income each year, how much will you save or borrow in each year?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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