Interest and consumption


Problem: Investing $1 for 35 years at 4 percent per annum yields approximately $2.94 in interest. The cost of consuming $1 today is therefore ______ of consumption in 35 years' time.

a) $2.94

b) $102.90

c) $3.94

d) $137.90

e) $1.94

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Microeconomics: Interest and consumption
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