If Peregrine Consumes (1, 400, 1, 440)and Earns (900

question 6

Multiple Choice

If Peregrine consumes (1, 400, 1, 440) and earns (900, 2, 040) and if the interest rate is 20%, the present value of his endowment is

• A)$2,940.
• B)$2,600.
• C)$5,720.
• D)$2,840.
• E)$6,620.

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Definitions:

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