2.

Your cousin is currently 14 years old. She will be going to college in 4 years. Your aunt and uncle would like to have $110,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 3.9% per year, how much money do they need to put into the account today to ensure that they will have $110,000 in 4 years? The amount they need to put away today is $. (Round to the nearest cent.) Suppose the interest rate is 3.8%. 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 $. (Round to the nearest cent.)