Ms. Newcastle has $60,000 income this year and $40,000 next year. The market interest rate is 10% per year. Suppose Ms. Newcastle wishes to consume $62,000 next year. What will be her consumption this year?
A) $60,000
B) $40,000
C) $70,000
D) $19,000

Question

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The Answer of Ms. Newcastle has $60,000 income this year and $40,000 next year. The market interest rate is 10% per year. Suppose Ms. Newcastle wishes to consume $62,000 next year. What will be her consumption this year?
A) $60,000
B) $40,000
C) $70,000
D) $19,000

Ms Newcastle Has $60,000 Income This Year and $40,000 Next