Mr. Thomas has $100 in income this year and will have zero income next year. The market interest rate is 10 percent per year. Mr. Thomas also has an investment opportunity in which he can invest $30 this year and receive $68 next year. Suppose Mr. Thomas consumes $50 this year and invests in the project. What will be his consumption next year? Multiple Choice O о о $65 $120 $90 $60

Mr. Thomas has $100 in income this year and will have zero income next year. The market interest rate is 10 percent per year. Mr. Thomas also has an investment opportunity in which he can invest $30 this year and receive $68 next year. Suppose Mr. Thomas consumes $50 this year and invests in the project. What will be his consumption next year? Multiple Choice O о о $65 $120 $90 $60

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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