The interest rate is 10% and will remain so forever.You do not drink wine but are interested in buying some for investment purposes.Assume that there are no transactions costs or storage costs and that a certain bottle of wine will be worth $55 one year from now, $58 two years from now, and $64 three years from now.After that it turns to worthless vinegar.How much should you be willing to pay for a bottle? (Pick the closest answer.)
A)$47.93
B)$53.12
C)$48.08
D)$50
E)$57.08

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The Answer of The interest rate is 10% and will remain so forever.You do not drink wine but are interested in buying some for investment purposes.Assume that there are no transactions costs or storage costs and that a certain bottle of wine will be worth $55 one year from now, $58 two years from now, and $64 three years from now.After that it turns to worthless vinegar.How much should you be willing to pay for a bottle? (Pick the closest answer.)
A)$47.93
B)$53.12
C)$48.08
D)$50
E)$57.08

The Interest Rate Is 10% and Will Remain So Forever