Question: Suppose the interest rate is 4 . 0 % 4 . 0 % . a . Having $ 2 0 0 2 0 0 today

Suppose the interest rate is
4.0%4.0%.
a. Having
$200200
today is equivalent to having what amount in one year?
b. Having
$200200
in one year is equivalent to having what amount today?
c. Which would you prefer,
$200200
today or
$200200
in one year? Does your answer depend on when you need the money? Why or why not?

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