Question: please help, if correct i will give thumbs up SNext Year D B $ Now C As a financial analyst at Citibank you want to


SNext Year D B $ Now C As a financial analyst at Citibank you want to help your client, John Smith, determine how to allocate his income and consumption over this year and next. Refer to the above graph Point Ais 55000 and Point Bis 55300 The solid sloping line represents the opportunities for investment in the capital market Suppose John Smith has $5,000 now avalloble to support consumption in periods 0 (now) and 1 (next year) John wants to consume exactly the same amount in each period Please choose al correct answers. Please note that each incorrect answer will do the core by 10% The man interest rate is 17% The artist at 1016 $ Now A As a financial analyst at Citibank, you want to help your client, John Smith, determine how to allocate his income and consumption over this year and next. Refer to the above graph Point Ais $5000 and Point is $5800. The solid sloping line represents the opportunities for investment in the capital market. Suppose John Smith has $5.000 now available to support consumption in periods 0 (now) and 1 (next year) John wants to consume exactly the same amount in each period. Please choose all correct answers. Please note that each Incorrect answer wil reduce the score by 10% The market interest rate is 17% The market interest rate is 10% John will come $3585 this penod The market interest rate is 15% The market interest rate is 14% John Wil consume $2605 this prod John will consume $4685 I period John wil consume 52500 this period $Next Year D B S Now C As a financial analyst at Citibank you want to help your client, John Smith, determine how to allocate his income and consumption over this year and next. Refer to the above graph Point Ais 55000 and Point B is $5700. The solid sloping line represents the opportunities for investment in the capital market Suppose John Smith has $5,000 now available to support consumption in periods 0 (now) and 1 (next your) Suppose John is given an opportunity to invest up to $5,000 at 25% risk-free in his friend startup business. John wants to consume exactly the same amount in each period. How much can be consume this period and next period? a. What is the market interest rate 0.14% 3 sample answer 18,42) b. How much will be consume this period $798 (sample answer S150045)
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