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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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.
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