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Individual Work

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Submitted By Quisha2011
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Finance
FIN 1103
Week 1 Individual Work

Perform Time Value Money Calculations

Assignment Instructions
To complete this assignment:

1. Answer all of the questions below in the space provided.
2. Reflect on the information presented in this week’s lesson and provide an insightful response to each question writing no more than two paragraphs.

Save and Submit to Dropbox
1. Save your work as a Microsoft Word 2010 (.docx) file that includes your name, course code, and title in the file name. For example: JaneSmith_FIN1103_Week1.docx.
2. To submit your assignment, go to the Dropbox and click "Submit Assignment."
3. Click on the drop-down menu to select the Week 1: Individual Work basket in the Dropbox.

Objective: Calculate the time value of money
Complete the Do the Math exercises on pages 30-31 of your textbook. Using the worksheets provided, please complete problem 2.
Do the Math Problem #2: Present and Future Values.
Rachael Berry, a freshman horticulture major at the University of Minnesota, has some financial questions for the next three years of school and beyond.
a. If Rachael’s tuition, fees, and expenditures for books this year total $12,000, 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.)
They would be $19,212 if you times $12,000 by 1,6010
b. Rachael 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’s dollars, assuming inflation of 3 percent? (Hint: Use Appendix A.2 or the Garman/Forgue companion website.)
The Scholarship in today’s dollars would be worth $4,313
c. Rachael 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

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