Assuming that you can get 100 for the refrigerator at that


You plan to buy a used refrigerator this year for $200 and to sell it when you graduate in two years. Assuming that you can get $100 for the refrigerator at that time, there is no inflation, and the interest rate is 5%, what is the true cost (your current outlay minus the resale value in current terms) of the refrigerator to you?

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Econometrics: Assuming that you can get 100 for the refrigerator at that
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