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Hi! I have a few finance related questions for my homework. I can’t figure out how to do them. Please help me! I also need the calculations, how I got the answers. Thank you in advance.
$350 today is worth the SAME as $350 tomorrow.False or True? (calculation)
At an interest rate of 12% it is better to have $100 today than $100 in 3 years.False or True? (Calculation)
Shawn wants to buy a new telescope. He estimates that it will take him one year to save the money and that the telescope will cost $200. At an interest rate of 6%, how much does Shawn need to set aside today to purchase the telescope in one year?
Don has just received a cash gift of $65,000 from his rich eccentric uncle. He wants to set it aside to pay for his daughter Cynthia’s college education. Cynthia will begin college in 13 years and Don’s financial advisor says that she can earn 7% interest on an investment in a special college fund. How much will Don have in the fund when Cynthia begins college?
Bridgette’s grandparents opened a savings account for her and placed $700 in the account. The account pays 3.5% interest. Bridgette wants to be a singer and she has her heart set on a new karaoke machine. The machine costs $200. How much less will the account be worth in 8 years if she buys the karaoke machine now versus leaving the account untouched?
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