Your car is worth considerably less money than you owe. This is an example of the...
Your car is worth considerably less money than you owe. This is an example of the principle of:
a) rate of time preference
b) acquisition costs
c) negative amortization
d) PITI
e) relative certainty
Homework Answers
Yes it is totally true that when we buy some asset then, it is considered always low in money as compared to buying price
It works on the concept of time preference
According to time preference, the value is always less than the buying
It is applicable to many goods and assets
It follows discount rate principle
So the answer is an option A
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