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Equivalent to having what amount today

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Reference no: EM131360281

Suppose the risk-free interest rate is 3.6%.

a. Having $ 100today is equivalent to having what amount in one year?

b. Having $100 in one year is equivalent to having what amount today?

c. Which would you prefer,$100today or $100in one year? Does your answer depend on when you need the money? Why or why not?

Reference no: EM131360281

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