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h3) Suppose the interest rate is 4.2%. a. Having $650 today is equivalent to having what amount in one year? b. Having $650 in one

h3)

Suppose the interest rate is 4.2%.

a. Having $650 today is equivalent to having what amount in one year?

b. Having $650 in one year is equivalent to having what amount today?

c. Which would you prefer, $650 today or $650 in one year? Does your answer depend on when you need the money? Why or why not?

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