Suppose the interest rate is 4.3 %. a. Having $ 400 today is equivalent to having what amount in one year? b. Having $ 400 in one year is equivalent to having what amount today? c. Which would you prefer, $ 400 today or $ 400 in one year? Does your answer depend on when you need the money? Why or why not? a. Having $ 400 today is equivalent to having what amount in one year?

a. $417.2. b. $383.51. c. $400 today.

Explanation:

a. Present value = $400

Interest rate = 4.3%

Future value= PV(1+r)^n

= 400(1+0.043)^1

= 400(1.043)

= $417.2

b. FV = $400

PV = Unknown

Interest = 4.3%

Future value= PV(1+r)^n

400 = PV(1+0.043)^1

400 = PV(1.043)

PV = 400/1.043

PV = $383.51

c. I'll prefer $400 today.

My answer does not depend on me needing money presently, I can actually invest the $400 today and get more value when it's a year. I'll have made more than $400.

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.

answer; microeconomics;