Answered

Welcome to Westonci.ca, where your questions are met with accurate answers from a community of experts and enthusiasts. Get accurate and detailed answers to your questions from a dedicated community of experts on our Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

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

Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.