Suppose that you can buy goods for $18,000 cash OR for a payment of $20,000 in two

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Suppose that you can buy goods for $18,000 cash OR for a payment of $20,000 in two year's time.

(a) If the interest rate is 6% which option is better for you?

(b) If the interest rate is 5% would your decision be any different? Why, or why not?

Related Book For answer-question

Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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Posted Date: Mar 28, 2023 02:04 AM

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Suppose that you can buy goods for $18,000 cash OR for a payment of $20,000 in two

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a If the interest rate is 6 it is better for you to pay the 20000 in two years ... View the full answer

Microeconomics

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