Which would be better at 3% compound annual interest, $800 today or $830 a year from now?

A) $800 today

B) The two options cannot be compared

C) The two options are equivalent cash flows

D) $830 a year from now

If you were offered $1000 today or $1100 in two years, which would you take at 4% compound annual interest?

A) $1100 in two years

B) The two options are equivalent cash flows

C) $1000 today

D) The two options cannot be compared

What is equivalence?

A) It is a function of size of the cash flows

B) It is a function of timing of the cash flows

C) It is a function of interest rate

D) All the above