3. Your income in Year 1 is R50 000, in Year 2 it is R100 000, in Year 3 it is R120 000, in Year 4 it is R150 000 and in Year 5 it is R110 000. a. What is your permanent income if the interest rate is 4%? b. If you consume your permanent income each year, how much will you save or borrow in each year?

3. Your income in Year 1 is R50 000, in Year 2 it is R100 000, in Year 3 it is R120 000, in Year 4 it is R150 000 and in Year 5 it is R110 000. a. What is your permanent income if the interest rate is 4%? b. If you consume your permanent income each year, how much will you save or borrow in each year?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 30P: A mortgage 105m is a loan that a person makes to purchase a house. Table 19.11 provides a list of...

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