Suppose the risk-free interest rate is 3.6%.

Suppose the risk-free interest rate is 3.6%.


Subject: Business    / Finance   
Question

Suppose the risk-free interest rate is 3.6%.

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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?

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