Reference no: EM132973074

Megan Berry, a freshman horticulture major at the University of Minnesota, has some financial questions for the next three years of school and beyond. Round your answers for the following questions to the nearest dollar.

Problem 1: If Megan's tuition, fees, and expenditures for books this year total $23,000, what will they be during her senior year (three years from now), assuming costs rise 6 percent annually? Round Future Value of a Single Amount in intermediate calculations to four decimal places.

Problem 2: Megan is applying for a scholarship currently valued at $3,000 at the end of first year. If she is awarded it at the end of next year, how much is the scholarship worth in today's dollars, assuming inflation of 3 percent? Round Present Value of a Single Amount in intermediate calculations to four decimal places.

Problem 3: Megan is already looking ahead to graduation and a job, and she wants to buy a new car not long after her graduation. If after graduation she begins an investment program of $3,000 per year in an investment yielding 6 percent, what will be the value of the fund after three years? Round Future Value of Series of Equal Amounts in intermediate calculations to four decimal places.

Problem 4: Megan's Aunt Karroll told her that she would give Megan $1,200 at the end of each year for the next three years to help with her college expenses. Assuming an annual interest rate of 3 percent, what is the present value of that stream of payments? Round Present Value of Series of Equal Amounts in intermediate calculations to four decimal places.