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# megan berry a freshman horticulture Present and Future Values Megan Berry a freshman horticulture major at the University of Minnesota has some financial q she begins an investment program of

megan berry a freshman horticulture

3. Present and Future Values. Megan Berry, a freshman horticulture major at the University of Minnesota, has some financial questions for the next three years of school and beyond. Answers to these questions can be obtained by using Appendix A or the Garman/Forgue companion website. (a) If Megan&#39;s tuition, fees, and expenditures for books this year total \$22,000, what will they be during her senior year (three years from now), assuming costs rise 4 percent annually? (Hint: Use Appendix A.1 or the Garman/Forgue companion website.) (b) Megan is applying for a scholarship currently valued at \$5,000. If she is awarded it at the end of next year, how much is the scholarship worth in today&#39;s dollars, assuming inflation of 3 percent? (Hint: Use Appendix A.2 or the Garman/Forgue companion website.) (c) 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 5. she begins an investment program of \$2,400 per year in an investment yielding 4 percent, what will be the value of the fund after three years? (Hint: Use Appendix A.3 or the Garman/Forgue companion website.) (d) Megan&#39;s Aunt Karroll told her that she would give Megan \$1,000 at the end of each year for the next three years to help with her college expenses. As- suming an annual interest rate of 2 percent, what is the present value of that stream of payments? (Hint: Use Appendix A.4 or the Garman/Forgue compan- ion website.) Future Value of a Single Amount (\$1 at the End of n Periods) (Used to compute the Compounded Future Value of a Known Lump Sum) Anbendix A. 17% 18% 19% 16% 20% 5% 1000 4% 1000 6% 10000 3% 100 7% 10000 8% 1000 9% 1000 10% 1000 15% 1500 11% 1100 13% 1300 12% 1200 14% 11400 1 ST 006 110100 0 0 LETI OLI S ri E 10 5 BOLE I DI SORTE VIST RSU 1581 16105 26584 8 109 17 9 1997 1951 1046 13048 3.1056 S06E ORE SBOVE 2134 3.3417 22092539529972 2.750 21722 C S ESOLO SIZNI FEETI 62 STYE 9.2705 10763124677 ON 15.67229.24122186 AEE 06 3.0256 3615543157 OSC 0997 16 SLEEK I 99 SRCE ON at 17 SA DOVE 12134 15157 1698 21 2.278 2.994 279 6 100 5093 23 SOOS 20059 DOS 500 1. 7 24641 2015 EROS BE 197 SISS E 91 576 162 TL OT 3079 SC G SMS E 4 7.0918 47% 2.949.397 15.0799 18001 20:16 7 58 7:58 11.9182 23:05 93 1674 2.162.772535452454940M 26 SCI80 EUR SI HIT SE EYE MII SOLERI SES 89 E55601 OIBOSE SEEDS 5197 SSS S 8155100512 66 2 05606 RESOWS SERWISOLSO 6600059 SEOSES 1150 10K T I HIL SEULS LEY LL LSCELLO DE O BE ESPOLE SHARE S DE

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