Question

If Megan's tuition, fees, and expenditures for books this year total $19,000, what will they be during her senior year (three years from now),

assuming costs rise 7 percent annually? Round Future value of a Single
Amount in intermediate calculations to four decimal places.

Answer 1

$23,275.817

Explanation:

To get this answer, multiply 19,000 by 1.07.

$19,000 x 1.07 = 20,330 (one year later)

$20,330 x 1.07 = $21,753.10 (two years later)

$21,753.10 x 1.07= $23,275.817 (three years later)

The answer round to cents would be $23,275.82