Suppose the risk-free interest rate is 3.5%.
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? Does your answer depend on when you need the money Why or why not?
a. Having $200 today is equivalent to having what amount in oneyear?
Having $200 today is equivalent to having $nothing in one year.? (Round to the nearest cent.)