Julia's Maximum Present Consumption at a 10% Interest Rate: ($91, $0)
With a 10% interest rate, Julia's maximum possible present consumption is achieved by borrowing against her entire future endowment of $100. This allows her to borrow a principal of $91 for immediate use. Her total repayment of $100 covers the $91 principal plus $9 in interest, leaving her with $91 for consumption now and nothing for later. This scenario is represented by the point (91, 0) on her feasible frontier.
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