Suppose the interest rate is $3\mathrm{.}7\%.$

a$.$ Having $$450$ today is equivalent to having what amount in one year?

b$.$ Having $$450$ in one year is equivalent to having what amount today?

c$.$ Which would you prefer, $$450$ today or $$450$ in one year? Does your answer depend on when you need the money?

Why or why not?

a$.$ Having $$450$ today is equivalent to having what amount in one year?

It is equivalent to $$1.($Round to the nearest cent.$)$

b$.$ Having $$450$ in one year is equivalent to having what amount today?

It is equivalent to $$.($Round to the nearest cent.$)$

c$.$ Which would you prefer, $$450$ today or $$450$ in one year? Does your answer depend on when you need the money?

Why or why not?

"Because money today is worth more than money in the future, $$450$ today is preferred to $$450$ in one year. This answer

is correct even if you don't need the money today, because by investing the $$450$ you receive today at the current

interest rate, you will have more than $$450$ in one year."

Is the above statement true or false?Suppose the interest rate is $3\mathrm{.}7\%.$

a$.$ Having $ $450$ today is equivalent to having what amount in one$$ year?

b$.$ Having $ $450$ in one year is equivalent to having what amount$$ today?

c$.$ Which would you$$ prefer, $ $450$ today or $ $450$ in one$$ year? Does your answer depend on when you need the$$ money? Why or why$$ not?