David consumes 200 in the current period and 330 in the future period. The real interest rate is 10% per period. David's present value of lifetime consumption is
(a) 500.
(b) 530.
(c) 550.
(d) 563.
Answer: A
David consumes 200 in the current period and 330 in the future period. The real interest rate is 10% per period. David's present value of lifetime consumption is
(a) 500.
(b) 530.
(c) 550.
(d) 563.
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.