Assume paul offers you a productivity boosting pill each, Finance Basics

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Assume paul offers you a productivity boosting pill each

Question: Assume Paul offers you a productivity boosting pill. Each pill lasts for one year and boosts your productivity such that it will increase your wage by $10,000. Paul is willing to sell you as many pills as you want to buy at a cost of $6,000 each. The catch is that Paul will only sell them to you today. If your discount rate is 10%, how many pills will you buy?

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Finance Basics: Assume paul offers you a productivity boosting pill each

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