Answered

Explore Westonci.ca, the premier Q&A site that helps you find precise answers to your questions, no matter the topic. Discover in-depth solutions to your questions from a wide range of experts on our user-friendly Q&A platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

Assume that you are willing to postpone consumption of​ $1,000 today and buy a certificate of deposit​ (CD) at your local bank with the​ $1,000. Holding the CD for one year provides you with an​ 8% reward for saving or postponing consumption. This reward for postponing consumption implies that at the end of the year you will have how much more money for​ spending?

Sagot :

Answer:

the amount that should be show more money for spending is $80

Explanation:

The computation of the amount that should be show more money for spending is as follows;

= Certificate of deposit × reward for saving or postponing consumption percentage

= $1,000 × 8%

= $80

hence, the amount that should be show more money for spending is $80

Thank you for choosing our service. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.