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An Individual Has an Income of $4,000 in Period 0

Question 14

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An individual has an income of $4,000 in period 0 and $0 in period 1. The individual has the potential investment opportunities given below:
An individual has an income of $4,000 in period 0 and $0 in period 1. The individual has the potential investment opportunities given below: An individual has income of $15,000 in period 0 and $20,000 in period 1. An investment opportunity that costs $10,000 in period 0 is worth $11,500 in period 1. The market interest rate is 8%. What is the maximum possible consumption in period 0 if the individual consumes $26,000 in period 1? An individual has income of $15,000 in period 0 and $20,000 in period 1. An investment opportunity that costs $10,000 in period 0 is worth $11,500 in period 1. The market interest rate is 8%. What is the maximum possible consumption in period 0 if the individual consumes $26,000 in period 1?

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