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Suppose therisk-free interest rate is 4.5%.a. Having $400today is equivalent to having what amount in oneyear?b. Having $400in one year is equivalent to having what

Suppose therisk-free interest rate is 4.5%.a. Having $400today is equivalent to having what amount in oneyear?b. Having $400in one year is equivalent to having what amounttoday?c. Which would youprefer,$400today or 400in oneyear? Does your answer depend on when you need themoney? Why or whynot?

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