5. Suppose a US Investor has $2450 to invest and can choose either a US investment paying 5.4%⁰ or a foreign Investment paying 2.2%, where e is currently 10.6. What value of e in one year would leave the investor indifferent between investing at home on. abroad? Use 3 decimals.

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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2/23
5. Suppose a US Investor has
$2.450 to invest and can choose
either a US investment paying
5,4% or a foreign Investment
paying 2,2%, where e is currently
0.6. What value of e in one year
would leave the investor indifferent
between investing at home or
labroad? Use 3 decimals.
Transcribed Image Text:2/23 5. Suppose a US Investor has $2.450 to invest and can choose either a US investment paying 5,4% or a foreign Investment paying 2,2%, where e is currently 0.6. What value of e in one year would leave the investor indifferent between investing at home or labroad? Use 3 decimals.
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