17. Suppose the interest rate is 4%. a. Having $200 today is equivalent to having what amount...

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17. Suppose the interest rate is 4%.

a. Having $200 today is equivalent to having what amount in one year?

b. Having $200 in one year is equivalent to having what amount today?

c. Which would you prefer, $200 today or $200 in one year? Does your answer depend on when you need the money? Why or why not?

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Fundamentals Of Corporate Finance

ISBN: 9780134475561

4th Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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