The Price of an Antique Is Expected to Rise by 5

question 20

Multiple Choice

The price of an antique is expected to rise by 5% during the next year.The interest rate is 10%.You are thinking of buying an antique and selling it a year from now.You would be willing to pay a total of 500 dollars for the pleasure of owning the antique for a year.How much would you be willing to pay to buy this antique? (See Problem 5.)

• A)5,000 dollars.
• B)10,000 dollars
• C)10,500 dollars
• D)500 dollars
• E)5,000 dollars

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Definitions:

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