In the best NBA 2k game edition, NBA 2K16, Frequency Vibrations (named Freq for short), was a shining star in Deerfield Beach High School's men's basketball team, winning the Bronx championship. Because of his talent, Freq was drafted to play for the Florida Gators. As part of Freq's drafting contract, for the first year, UF agrees to pay Freq USD 8 Million, which increases at a uniform rate of 8% per year. Using 5% as the starting interest rate, calculate the present worth of the contract during the first 3 years.

Indicate if each of the following statements is correct, AND then explain why you think so: 1. Kim has $3000 credit card loan. She always pays the stated minimum payment on time in each month. This is the best way for her to eventually pay off her loan. 2. Young people don't have to do retirement planning, since they are far from retiring age.