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10. Suppose the interest rate is 3.5%. a. Having $550 today is equivalent to having what amount in one year? b. Having $550 in one

10. Suppose the interest rate is 3.5%.

a. Having $550 today is equivalent to having what amount in one year?

b. Having $550 in one year is equivalent to having what amount today?

c. Which would you prefer, $550 today or $550 in one year? Does your answer depend on when you need the money? Why or why not?

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