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Suppose the interest rate is 4.2%. a. Having $350 today is equivalent to having what amount in one year?b. Having $350 in one year is

Suppose the interest rate is

4.2%.

a. Having

$350

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

$350

in one year is equivalent to having what amount today?c. Which would you prefer,

$350

today or

$350

in one year? Does your answer depend on when you need the money? Why or why not?

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