Question: Part III: Problems. (45) 1. Suppose the interest rate is 4%. a. Having S1,000 today is equivalent to having what amount in one year? (3)

Part III: Problems. (45) 1. Suppose the interest rate is 4%. a. Having S1,000 today is equivalent to having what amount in one year? (3) b. Having S1,000 in one year is equivalent to having what amount today? (3) c. Which would you prefer, $1,000 or $1,000 in one year? Does your answer depend on when you need the money? Why or Why not? (4)

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