An individual has income of $15,000 in period 0 and $20,000 in period 1.An investment opportunity that costs $10,000 in period 0 is worth $11,500 in period 1.The market interest rate is 8%.What is the maximum possible consumption in period 0 if the individual consumes $26,000 in period 1?

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The Answer of An individual has income of $15,000 in period 0 and $20,000 in period 1.An investment opportunity that costs $10,000 in period 0 is worth $11,500 in period 1.The market interest rate is 8%.What is the maximum possible consumption in period 0 if the individual consumes $26,000 in period 1?

An Individual Has Income of $15,000 in Period 0 and $20,000