Malaysian Island Resort. Theresa Nunn is planning a 30-day vacation on Pulau Penang, Malaysia, one year from now. The present charge for a luxury suite plus meals in Malaysian ringgit (RM) is

RM1,042/day.

The Malaysian ringgit presently trades at

RM3.1350/$.

She determines that the dollar cost today for a 30-day stay would be

$9,971.29.

The hotel informs her that any increase in its room charges will be limited to any increase in the Malaysian cost of living. Malaysian inflation is expected to be

2.7428%

annum, while U.S. inflation is expected to be

1.292%.

a. How many dollars might Theresa expect to need one year hence to pay for her 30-day vacation?

b. By what percent will the dollar cost have gone up? Why?

ROUND TO THE NEAREST CENT