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Suppose the interest rate is 3.9 % a. Having $500 today is equivalent to having what amount in oneyear? b. Having $ 500 in one

Suppose the interest rate is 3.9 %

a. Having $500 today is equivalent to having what amount in oneyear?

b. Having $ 500 in one year is equivalent to having what amounttoday?

c. Which would youprefer, $500 in oneyear? Does your answer depend on when you need themoney? Why or whynot?

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