Multiple Choice
An individual who is considering consumption between two time periods (year 1 and year 2) has an endowment of $20,000 in year 1 and $15,000 in year 2.If the interest rate is 5 percent,what is the maximum approximate amount that can be spent on consumption in year 1?
A) $35,000
B) $20,000
C) $35,750
D) $34,250
Correct Answer:
Verified
Correct Answer:
Verified
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