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QUESTION
Ben has income of $40,000 in period 1 and $10,000 in period 2. Which of the following is correct?
Ben has income of $40,000 in period 1 and $10,000 in period 2. Which of the following is correct? (Explain)
A. When interest rate is 10%, the present value of Ben's income is $49,524.
B. Ben is more like to be a borrower.
C. When interest rate is 5%, the present value of Ben's income is $49,524.
D. When interest rate is 0%, the present value of Ben's income is $49,524.
