If Peregrine Consumes (900, 805)and Earns (600, 1, 150)and

question 5

Multiple Choice

If Peregrine consumes (900, 805) and earns (600, 1, 150) and if the interest rate is 15%, the present value of his endowment is

• A)$1,600.
• B)$3,440.
• C)$1,705.
• D)$1,750.
• E)$4,040.