Suppose the interest rate is 3.9%.

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?

a. Having $550 today is equivalent to having what amount in one year? It is equivalent to $______. (Round to the nearest cent.)

b. Having $550 in one year is equivalent to having what amount today? It is equivalent to $_______. (Round to the nearest cent.)

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?"Because money today is worth more than money in the future, $550 today is preferred to $550 in one year. This answer is correct even if you don't need the money today, because by investing the $550 you receive today at the current interest rate, you will have more than $550 in one year."Is the above statement true or false? True or False. (Select from the drop-down menu.)