Suppose the risk-free interest rate is 4%. a. Having $200 today is equivalent to having what amount
Question:
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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a Computation of the Future value Amount today 20000 Interest rate 400 Value in 1 ...View the full answer
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