Question
You wish to get a Surface when you enter your first university degree in 2 years. You have about $2,000 today in your saving account
You wish to get a Surface when you enter your first university degree in 2 years. You have about $2,000 today in your saving account but the Surface costs $4,500. Assume the price stays the same. If you can earn 2.5% per annum, how much do you have to invest (today) to get the Surface in 2 years? If your parents are happy to subsidize $500 (today), how much do you need to invest today? a. You need to deposit $2,398.75 into your saving account today but only $1,898.75 with subsidy from parents. b. You need to deposit $2,400 into your saving account today but only $1,500 with subsidy from parents. c. You need to deposit $2,500 into your saving account today but only $2,000 with subsidy from parents. d. You need to deposit $2,283.17 into your saving account today but only $1,783.16 with subsidy from parents.
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