Question

James Bennett also allocated wealth between youth and old age. He has no cash currently (in his youth) but will inherit $ 3000 in his old age. He can lend and borrow at the bank 18%(that is, lending $1 in youth will give him $1.18 in old age). He has an investment opportunity that costs $12,000 now in his youth and has payoff of $15,000 in his old age.This is the only investment opportunity available to him. What is the most he can consume in his youth?

Answer 1

IDKStep-by-step explanation: