A family of four has an income of $15,000 today and will earn $24,000 tomorrow. If the family consumes $11,500 in the first period and $15,000 in the second period, what is the interest rate.

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Chapter29: Interest, Rent, And Profit
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A family of four has an income of $15,000 today and will earn $24,000 tomorrow.

If the family consumes $11,500 in the first period and $15,000 in the second period, what is the interest rate.

 

(this question deals with intertemporal choice from microeconomics)

(also I am seeking the formula to find the interest rate)

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