To the nearest 0.01, what is the present value of each of the following income streams (expressed in units of consumption goods), when the real interest rate is r =5%, and when the real interest rate is r =1%? c) m1 =−100, mt =100 for all t =2,...,∞

To the nearest 0.01, what is the present value of each of the following income streams (expressed in units of consumption goods), when the real interest rate is r =5%, and when the real interest rate is r =1%? c) m1 =−100, mt =100 for all t =2,...,∞

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter9: An Introduction To Basic Macroeconomic Markets

Section: Chapter Questions

Problem 9CQ

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Question

To the nearest 0.01, what is the present value of each of the following income streams (expressed in units
of consumption goods), when the real interest rate is r =5%, and when the real interest rate is r =1%?
c) m1 =−100, mt =100 for all t =2,...,∞

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