Sabrina prefers $22.00 now to $25.00 one year from now but prefers $25.00 one year from now to $20.00 now. Which of the following provides the tighest correct bounds on her personal rate of discount, ip? 0.13636ip 0.33 0.025ip0.33 0.086957 p≤ 0.17647 0.13636ip 0.25
Sabrina prefers $22.00 now to $25.00 one year from now but prefers $25.00 one year from now to $20.00 now. Which of the following provides the tighest correct bounds on her personal rate of discount, ip? 0.13636ip 0.33 0.025ip0.33 0.086957 p≤ 0.17647 0.13636ip 0.25
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.6P
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Transcribed Image Text:Sabrina prefers $22.00 now to $25.00 one year from now but prefers $25.00 one year
from now to $20.00 now.
Which of the following provides the tighest correct bounds on her personal rate of
discount, ip?
0.13636
0.33
0.025 ip 0.33
0.086957 ip ≤ 0.17647
0.13636ip 0.25
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