On January 1, 2013, you decided to take a trip around the world after graduation

Question

On January 1, 2013, you decided to take a trip around the world after graduation. Assume that you will graduate 5 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 5 years, starting on December 31, 2013. The savings account will earn 6 percent interest.

How much money will you have for the trip at the end of year 5? (Round your final answer to the nearest whole dollar amount.)

What is the total amount of interest earned on the investment? (Round your final answer to the nearest whole dollar amount.)

On January 1, 2013, you decided to take a trip around the world after graduation. Assume that you will graduate 5 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 5 years, starting on December 31, 2013. The savings account will earn 6 percent interest.

Explanation / Answer

Money at end of 5th year = $26776

Interest earned = $ 3026

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