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You have won a contest and are allowed to choose between two prizes. One option is to receive $200 now and another $200 a year from now. The second option is $150 now and $255 a year from now.
(i) At what level of interest rate (if any) is the present value of the two prizes identical?
(ii) If the actual interest rate is below the number you found in your answer above, which of the two options is characterized by higher present value? Explain.
Can you draw a line which starts from left to right has a positive slope?
Over the next two years, Susan's income will be $33,000 in the first year and $33,000 in the second year. She can both borrow and lend money at the 10% of annual interest. (a) W
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You are a logistics consultant for a rapidly growing online retail company. They plan to expand their operations to a new geographical region.Task: Develop a comprehensive logistic
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the demand for blankets has been estimated y^=0.5-1.5x2+3.0x3
a) Explain what is calculated by a correlation coefficient. b) Why do economists commonly find regression a more useful tool than correlation? c) In a sample of 102 men the corre
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