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You are offered a choice between $ 5 5 0 today and $ 5 7 5 one year from today. Assume that interest rates are

You are offered a choice between $

550

today and $

575

one year from today. Assume that interest rates are

5

percent. Which do you prefer?

Multiple Choice

They are equivalent to each other.

575

one year from today

550

today

550

today at

4

percent interest rates

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