A coin collector has a set of coins that are worth $500 now. The coin collector wants to determine the optimal time to sell these coins. The value of the coins at time t is V(t) = 500e0.8t 0.3 If the interest rate is 4 percent, what is the optimal time to sell the set of coins?

A coin collector has a set of coins that are worth $500 now. The coin collector wants to determine the optimal time to sell these coins. The value of the coins at time t is V(t) = 500e0.8t 0.3 If the interest rate is 4 percent, what is the optimal time to sell the set of coins?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter16: Information, Risk, And Insurance

Section: Chapter Questions

Problem 8RQ: What are some ways that someone looking for a loan might reassure a bank that is faced with...

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3. A coin collector has a set of coins that are worth $500 now.
The coin collector wants to determine the optimal time to sell these coins.
The value of the coins at time t is
V(t) = 500e0.8t 0.3
If the interest rate is 4 percent, what is the optimal time to sell the set of coins?

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