On January 1, 2013, you decided to take a trip around the world after graduation
ID: 2458487 • Letter: O
Question
On January 1, 2013, you decided to take a trip around the world after graduation. Assume that you will graduate 3 years from January 1, 2013. Your grandmother wanted to help you save money for the trip. Being the generous and sweet lady she is, your grandmother decided to deposit $4,750 in the travel fund at the end of each of the next 3 years, starting on December 31, 2013. The savings account will earn 5 percent interest. Required: 1. How much money will you have for the trip at the end of year 3? (Round your final answer to the nearest whole dollar amount.) $ 2. What is the total amount of interest earned on the investment? (Round your final answer to the nearest whole dollar amount.) $
Explanation / Answer
Ans:- Amount for the trip at the end of year-4 = 3250*(1.07)^3 + 3250*(1.07)^2 + 3250*(1.07)^1 + 3250
= $144429.81
= $14430
2]What is the total amount of interest earned in this investment?
Ans:- Tota l amount of interest earned = Amount for the trip at the end of year-4
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.