Can anyone give me any information on Infinitus 2010?

Anyone really good at economics, or just slightly decent?

• So I already know the answers, I would just like an explanation. The answers are the only options under the different interest rates, just in case the format was a little off. Thanks for any accurate answers! Questions 5-8 are based on this fact and on the following information. It is Nov 11, 2009 and your Uncle DeeBee wants to give you a present. You can collect your money in any of three ways: A -- $2000 on Nov 11, 2010 and every Oct 15 thereafter, forever; or B -- $4500 on Nov 11, 2010; or C -- $1500 today. Assume Uncle DeeBee will let you (or anyone else) sell or give to anyone else the rights to receive these payments. 5. If the interest rate is 50% you will: a. Choose A 6. If the interest rate is 100% you will: b. Choose B 7. If the interest rate is 200% you will: e. Be indifferent between B and C

• Answer:

  It depends because the interest rate determines how fast that money will grow once you have it, assuming you put it in the bank. so at 50% interest, that 2000 every year will be the best option, and 100% interest 4500 is the best, and at 200% the 1500 you get today would apparently equal 4500 by the date you could receive the 4500. those are absurdly high interest rates though.