The price of a consol that paying $85 annually is $1,416.67 when the interest rate is 6 percent. If the interest rate fall by 1 percent, the price of the consol is Select one: a. $1,700. b. $700. c. $1,400. d. $1,000.

The price of a consol that paying $85 annually is $1,416.67 when the interest rate is 6 percent. If the interest rate fall by 1 percent, the price of the consol is Select one: a. $1,700. b. $700. c. $1,400. d. $1,000.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The price of a consol that paying $85 annually
is $1,416.67 when the interest rate is 6
percent. If the interest rate fall by 1 percent,
the price of the consol is
Select one:
a. $1,700.
b. $700.
c. $1,400.
d. $1,000.

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