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Art Dreck's Paintings Are Terribly Unpopular Now

Question 13

Multiple Choice

Art Dreck's paintings are terribly unpopular now. In fact nobody would pay a dime to have one of his paintings on the wall now. But experts believe that 10 years from now, there will be a craze for Dreck paintings. The craze will last for 2 years and then nobody will ever want to see a Dreck again. During this 2-year period, people will be willing to pay $1,100 a year to have an original Dreck on the wall. The interest rate is r. If the experts' belief is widely held among investors, today's market value of Dreck should be about


A) Art Dreck's paintings are terribly unpopular now. In fact nobody would pay a dime to have one of his paintings on the wall now. But experts believe that 10 years from now, there will be a craze for Dreck paintings. The craze will last for 2 years and then nobody will ever want to see a Dreck again. During this 2-year period, people will be willing to pay $1,100 a year to have an original Dreck on the wall. The interest rate is r. If the experts' belief is widely held among investors, today's market value of Dreck should be about A) B) C) D) E)
B) Art Dreck's paintings are terribly unpopular now. In fact nobody would pay a dime to have one of his paintings on the wall now. But experts believe that 10 years from now, there will be a craze for Dreck paintings. The craze will last for 2 years and then nobody will ever want to see a Dreck again. During this 2-year period, people will be willing to pay $1,100 a year to have an original Dreck on the wall. The interest rate is r. If the experts' belief is widely held among investors, today's market value of Dreck should be about A) B) C) D) E)
C) Art Dreck's paintings are terribly unpopular now. In fact nobody would pay a dime to have one of his paintings on the wall now. But experts believe that 10 years from now, there will be a craze for Dreck paintings. The craze will last for 2 years and then nobody will ever want to see a Dreck again. During this 2-year period, people will be willing to pay $1,100 a year to have an original Dreck on the wall. The interest rate is r. If the experts' belief is widely held among investors, today's market value of Dreck should be about A) B) C) D) E)
D) Art Dreck's paintings are terribly unpopular now. In fact nobody would pay a dime to have one of his paintings on the wall now. But experts believe that 10 years from now, there will be a craze for Dreck paintings. The craze will last for 2 years and then nobody will ever want to see a Dreck again. During this 2-year period, people will be willing to pay $1,100 a year to have an original Dreck on the wall. The interest rate is r. If the experts' belief is widely held among investors, today's market value of Dreck should be about A) B) C) D) E)
E) Art Dreck's paintings are terribly unpopular now. In fact nobody would pay a dime to have one of his paintings on the wall now. But experts believe that 10 years from now, there will be a craze for Dreck paintings. The craze will last for 2 years and then nobody will ever want to see a Dreck again. During this 2-year period, people will be willing to pay $1,100 a year to have an original Dreck on the wall. The interest rate is r. If the experts' belief is widely held among investors, today's market value of Dreck should be about A) B) C) D) E)

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