Problem 1: You're trying to save up for a long and expensive vacation. You want to take a trip to Europe when you graduate in three years. Considering how much more expensive is the Euro (€) to the U.S. Dollar ($), and if you can earn 15% on your investments, how much would you have to deposit in order to have $30,000 when you graduate?
Problem 2: Would you rather have $500 now or $1,000 ten years from now? You can earn 6% on any investments. Please justify your answer
Problem 3: You can buy a mortgage from a mortgage broker. Mortgage payments are $35,000 per year and there are 15 years to maturity. The broker is asking $350,000 for the note. You already hold similar mortgages and they yield 12%. Should you buy this note?