Suppose the risk$-$free interest rate is $3\mathrm{.}7\%.$

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

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

c$.$ Which would you prefer, $$500$ today or $$500$ in one year? Does your answer depend on when you need the money? Why or why not?

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

Having $$500$ today is equivalent to having $$518\mathrm{.}50$ in one year. $($Round to the nearest cent.$)$

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

Having $$500$ in one year is equivalent to having $ $$ today. $($Round to the nearest cent.$)$

c$.$ Which would you prefer, $$500$ today or $$500$ in one year? $($Select the best choice below.$)$

A$.$ $$500$ in one year

B$.$ $$500$ today

Does your answer depend on when you need the money? Why or why not? $($Select the best choice below.$)$

A$.$ No$,$ because if you didn't need it then the $$500$ can be invested and you could have more than $$500$ in one year.

B$.$ Yes, because if you didn't need it$,$ it's not worth $$500.$

C$.$ No$,$ because if you did need it you could borrow the $$500.$

D$.$ Yes, because if you did need the money today it is more valuable than $$500.$