Suppose the risk-free interest rate is 4%. a. Having $200 today is equivalent to having what amount

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Suppose the risk-free interest rate is 4%.

a. Having $200 today is equivalent to having what amount in one year?

b. Having $200 in one year is equivalent to having what amount today?

c. Which would you prefer, $200 today or $200 in one year?

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Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Question Posted: May 12, 2012 06:49 AM

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Suppose the risk-free interest rate is 4%. a. Having $200 today is equivalent to having what amount

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a Computation of the Future value Amount today 20000 Interest rate 400 Value in 1 ...View the full answer

Fundamentals of Corporate Finance

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