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 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)

To find the future value of Megan's investment, we can use the future value of an annuity formula. Given that she plans to invest \( \$ 2,400 \) per year at a rate of 4% for 3 years, we use the formula: \[ FV = P \times \frac{(1 + r)^n - 1}{r} \] Where: - \( P \) = annual payment (\$ 2,400) - \( r \) = annual interest rate (0.04) - \( n \) = number of years (3) Calculating this, we substitute the values: \[ FV = 2400 \times \frac{(1 + 0.04)^3 - 1}{0.04} \] \[ FV = 2400 \times \frac{(1.124864) - 1}{0.04} \] \[ FV = 2400 \times 3.1216 \] \[ FV \approx 7,487.84 \] So, after three years, Megan's investment will be worth approximately \( \$ 7,487.84 \).