Problem 1
How much is \(\$ 1\) million to be delivered 20 years in the future worth today if the interest rate is 20 percent?
Problem 2
As the interest rate rises, does the intertemporal budget constraint become steeper or flatter?
Problem 5
What is the present value of \(\$ 100\) one year from now if the interest rate is \(10 \% ?\) What is the present value if the interest rate is \(5 \% ?\)
