How much would you loan your brother-in-law if he said he could repay you $200 in six months, $400 in a year, and $700 in two years if you can get 3 percent interest from the bank on a six month CD? Show you are indifferent between the loan and putting your money in the bank for the next two years

Answer rating: 100% (QA)

Analyzing the Loan vs CD Scenario Heres how to determine the loan amount that makes you indifferent ... View the full answer