Suppose the value of house T periods from now will be equal to 80T. The rate of interest onthe government bond is equal to 2%. It is optimal to sell the housea. 50 years from nowb. 40 years from nowc. Anytime between now and 100 yearsd. It is never optimal to sell the house

A lender charges a borrower an interest rate that is a percentage of the principal (the amount…

Suppose the value of house T periods from now will be equal to 80T. The rate of interest on he government bond is equal to 2%. It is optimal to sell the house 1. 50 years from now p. 40 years from now . Anytime between now and 100 years d. It is never optimal to sell the house

Suppose the value of house T periods from now will be equal to 80T. The rate of interest on he government bond is equal to 2%. It is optimal to sell the house 1. 50 years from now p. 40 years from now . Anytime between now and 100 years d. It is never optimal to sell the house

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose the value of house T periods from now will be equal to 80T. The rate of interest on
the government bond is equal to 2%. It is optimal to sell the house
a. 50 years from now
b. 40 years from now
c. Anytime between now and 100 years
d. It is never optimal to sell the house

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