Can anyone help me with this economics/finance question?
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Can anyone help me with this economics/finance question? Can anyone help me with this economics/finance question? Suppose that you are a participant in the single period financial market. Your certain expectation is to receive £3,000 immediately, and an additional £5,328 at the end of the period. The market rate of interest for riskless borrowing and lendingis 11 per cent. 1- What is the maximum amount you can consume immediately? A- £8,328.00 B- £7,800.00 C- £51,436.36 D- £7,843.64 2-What is the maximum that you can consume at the end of the period? A- £8,328.00 B-£7,800.00 C-£5,658.00 D-£8,658.00 3- Suppose you wished to consume £5000 immediately, how much can you consume at the end of the period? A-£3,108.00 B-£1,000.00 C-£8,656.00 D-£7,548.00 4- If you wished to consume £7548 at the end of the period, how much can you consume now? A-£3,000.00 B-£1,000.00 C-£981.82 D-£7,800.00 How do you work these answers out? Any help would be greatly appreciated.
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Answer:
ask ross perot
maukie12... at Yahoo! Answers Visit the source
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