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Suppose the interest rate is 3.9%. a. Having $650 today is equivalent to having what amount in one year? b. Having $650 in one year

Suppose the interest rate is 3.9%.

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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