A consumer receives an endowment of $200.00 this period and $800.00 next period. Currently the interest...
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A consumer receives an endowment of $200.00 this period and $800.00 next period. Currently the interest rate is 11.00%. The present value of the endowment is $ .(Give your answer to two decimals.) *222 Part 2 (0.4 pt) Feedback Part 3 (0.4 pt) Suppose that instead, the endowment is $240.00 this period and $1040.00 next period. Suppose that the interest rate is still 11.00%. Now the present value of the endowment is $ 1394.40 .(Give your answer to two decimals.) With the new endowments, the consumer is wealthier See Hint Feedback See Hint Now suppose that the endowment is $150.00 in the first period and $775.00 in the second period. The interest rate is still 11.00%. Now the present value of the endowment is $ 1010.25 . (Give your answer to two decimals.) With the new endowments, the consumer is poorer A consumer receives an endowment of $200.00 this period and $800.00 next period. Currently the interest rate is 11.00%. The present value of the endowment is $ .(Give your answer to two decimals.) *222 Part 2 (0.4 pt) Feedback Part 3 (0.4 pt) Suppose that instead, the endowment is $240.00 this period and $1040.00 next period. Suppose that the interest rate is still 11.00%. Now the present value of the endowment is $ 1394.40 .(Give your answer to two decimals.) With the new endowments, the consumer is wealthier See Hint Feedback See Hint Now suppose that the endowment is $150.00 in the first period and $775.00 in the second period. The interest rate is still 11.00%. Now the present value of the endowment is $ 1010.25 . (Give your answer to two decimals.) With the new endowments, the consumer is poorer
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Part 1 To find the present value of the endowment we can use the formula for present value PV C1 1 r ... View the full answer
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