imagine that upon purchasing a helmet an economist pays a deposit of $700. Calculate the present value of the $700 if it will be returned at the end of 15 years if the future is discounted using a rate of 5%. Please show your calculations
Making a new protective helmet costs $200. Proper disposal, where all the toxic stuff is correctly handled and
Question: Truth be told, most economists don’t wear the helmets for most of their careers. Their ideas are usually only good at the start of their careers. After 15 years or so, most of their ideas get stale and nobody is interested in reading or publishing their research, even when they work really, really hard on it. Anyway, imagine that upon purchasing a helmet an economist pays a deposit of $700. Calculate the present value of the $700 if it will be returned at the end of 15 years if the future is discounted using a rate of 5%. Please show your calculations.
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