Answer this financial accounting question If Ram Nation can give up oneunit of future consumption andas a aresultincrease itscurrent consumption by 0.96units, what must be its realrate of interest.

Explanation of Real Rate of Interest:The real rate of interest is the percentage increase in…

Answered: If Ram Nation can give up one unit of…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 2QTD

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If Ram Nation can give up one unit of future consumption and as a a result increase its current consumption by 0.96 units, what must be its real rate of interest.