If Peregrine in Problem 1 Consumes (900, 805) and Earns

Question 4
Multiple Choice

If Peregrine in Problem 1 consumes (900, 805) and earns (600, 1, 150) and if the interest rate is 15%, the present value of his endowment is A) $1,600. B) $3,440. C) $1,705. D) $1,750. E) $4,040.