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Rate of

Rate of. Return. Her name is Gillian.She is choosing her Husband. Her name is Sa. She is Gillian’s best friend. He is a archeologist.He is dating Gillian. His name call Matt. I will not choose handsome boy. Because they will not loyal to me!.

beverly-wilkins
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Rate of

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  1. Rate of Return

  2. Her name is Gillian.She is choosing her Husband. Her name is Sa. She is Gillian’s best friend. He is a archeologist.He is dating Gillian. His name call Matt.

  3. I will not choose handsome boy. Because they will not loyal to me!

  4. I will choose Matt because he is an archeologist.Since he likes curio very much,when I become older,HE WILL LOVE ME MORE AND MORE. What??????? It is a wrong concept!! You are totally wrong!!

  5. Why???????I don`t think so. Let me explain to you by an econ concept. I will explain what is rate of return and use an example of Curio.

  6. Rate of return of a piece of capital in a certain period is the percentage of the sum of its net receipts and the change in its market value within the period divided by its initial market value. Net receipts +change in market value X100% Initial market value

  7. Suppose you are the curio priced on $10000 now. Your value will increase year by year. He expects your value will increase by a constant amount of $1500each year. The interest rate is 10%. When will he sell the curio(leave you)?? The annual rate of return from you at different years are listed by the following table. Um……

  8. You can see this table.

  9. Whatever the rate of return from you is larger than the market interest rate, it is more valuable to invest on you than others. To maximize wealth, he will leave you at the the 4th year which your rate of return will fall below the market interest rate.

  10. Therefore, Gillian…..if you were that curio, he will love you very much now, but he will leave you if your market value is smaller than the interest rate(at the 4th year).Can you see???

  11. Oh no !!!!! I understand now~……I won't choose Matt now…..I like Edison~~~

  12. Edison….Honey….. Gillian…….I love you so much!!!!!

  13. IVY CHEUNG(2) FANNY WONG(26) ANNIE YUEN(30)

  14. THE END

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