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The Price of an Antique Is Expected to Rise by 9

Question 3

Multiple Choice

The price of an antique is expected to rise by 9% during the next year.The interest rate is 11%.You are thinking of buying an antique and selling it a year from now.You would be willing to pay a total of 900 dollars for the pleasure of owning the antique for a year.How much would you be willing to pay to buy this antique? (See Problem 5.)


A) 8,181.82 dollars
B) 18,900 dollars
C) 900 dollars
D) 45,000 dollars
E) 9,000 dollars

Correct Answer:

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