May and Noon both like My Little Pony toys and Matchbox cars. What is the value of each child's marginal rate of substitution at point A? Explain whether that point is or is not a Pareto-efficient outcome. 
Definitions:
Compounded Annually
A method of calculating interest where the interest is added to the principal sum each year, thus each subsequent interest calculation is made on an increased principal.
Present Value
The current value of a future amount of money or stream of cash flows given a specified rate of return.
Future Value
The amount of money an investment is expected to be worth in the future, considering interest or capital gains.
Interest Rate
The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.
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