Homework Help: economics

Posted by Kysha on Monday, April 26, 2010 at 7:57am.

Suppose you were offered $2,000 to be delivered in 1 year. Further suppose you had the alternative of putting money into a safe certificate of deposit paying annual interest at 10 percent. Would you pay $1,900 in exchange for $2,000 after 1 year? What is the maximum amount you would pay for the offer of $2,000? Suppose the offer was $2,000, but delivery was to be in 2 years instead of 1 year. What is the maximum amount you would be willing to pay?

No one has answered this question yet.

Answer this Question

Related Questions

Economics - Suppose that you have a $400,000 commercial mortgage with a 6.3% APR...
Please Help - Suppose that you want to purchase a home for $450,000 with a 30 ...
math - Suppose that you want to purchase a home for $450,000 with a 30 year ...
algebra with application - Suppose that you want to purchase a home for $450,000...
ALGEBRA - Suppose that you want to purchase a home for $450,000 with a 30 year ...
math - Your rich godfather has offered you a choice of one of the three ...
accounting - Your rich godfather has offered you a choice of one of the three ...
Math - Suppose that you want to purchase a home for $450,000 with a 30 year ...
math - Suppose that you want to purchase a home for $450,000 with a 30 year ...
math - Suppose that you want to purchase a home for $450,000 with a 30 year ...

For Further Reading

First Name:
School Subject:
Answer: