Homework Answers
Answere 2: In the question we have
Present Value (PV) =100 , rate of interest (R )= 7%, time (T)= 2 years, Future Value(FV)
PV=FV * [1 / (1 + R)t]
100= FV* [ 1 / ( 1+0.07)2]
100= FV [ 1 / ( 1.07)2]
100= FV [1/ 1.1449]
100= FV [87.3438]
100/87.3438= FV
114.49= FV
Answere 2: 114.49
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Question 1. Suppose Kala's utility function is a function of consumption, with U = 150 cm...
Question 1. Suppose Kala's utility function is a function of consumption c, with U = 150-102...
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Question 4. Laura is deciding how much to consume in periods o, 1 and 2. Suppose Laura income in period o is o, her income in period is y, and her income in period alsay. The price of consumption in period / is p. Assuming the interest rate is T, and consumption in period is denoted. In the utility maximization problem what variables are endogenous and which are exogenous ? Figure 1. Consider the following diagram of an indifference curve...
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anyone help me with this question?
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