Business, 13.09.2019 00:30, caityi9619
James also allocates wealth between youth and old age. he has no cash in his youthnow, but will inherit $3000 in his old age. he can lend and borrow at the bank at18% between time 1 and time 2. he has an investment opportunity that costs$12,000 now in his youth and has a payoff of $15,000 in his old age. this is the onlyinvestment opportunity available to him. what is the most he can consume in hisyouth? assume james cannot consume a negative amount in old age.
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James also allocates wealth between youth and old age. he has no cash in his youthnow, but will inhe...
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