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A wine dealer owns a case of fine wine that can be sold for Kev" dollars t years from now. If there are no storage costs and the interest rate is r, when should the dealer sell the wine?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter17: Financial Markets

Section: Chapter Questions

Problem 7SCQ: If you receive 500 in simple interest on a loan that you made for 10,000 for five years, what was...

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5.14 A wine dealer owns a case of fine wine that can be sold for Kev' dollars t years from
now. If there are no storage costs and the interest rate is r, when should the dealer
sell the wine?

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