Question
In: Economics
Jayden has a relatively stable income of $ 300 million per year. Jayden constantly spends 80%...
Jayden has a relatively stable income of $ 300 million
per year. Jayden constantly spends 80% of his income on consumption
goods each month and use the rest of his income for a vacation
abroad at the end of the year. Before 20% of his income used,
Jayden have the option to:
(1) save their money in the form of savings with an annual interest
rate (4%) and have no administration fees, or
(2) buying bonds with a yield of 7% and a brokerage fee of 100
thousand per transaction.
Jayden is assumed to manage his expenses optimally by making cash
withdrawal transactions of n, decide to buy bonds of n - 1 during
the year and make the bond sale transaction on end of the year to
finance his vacation needs.
Based on the information above, determine the amount of money
requested for transactions (transaction demand for money) Mtr !
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
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