The Price of an Antique Is Expected to Rise by 4

question 12

Multiple Choice

The price of an antique is expected to rise by 4% during the next year.The interest rate is 6%.You are thinking of buying an antique and selling it a year from now.You would be willing to pay a total of 400 dollars for the pleasure of owning the antique for a year.How much would you be willing to pay to buy this antique?

• A)6,666.67 dollars
• B)8,400 dollars
• C)400 dollars
• D)20,000 dollars
• E)4,000 dollars