Math 1 3 2 4 - Project 3 ( Finance ) You are planning an overseas trip in a few years as your graduation trip.
Math Project Finance
You are planning an overseas trip in a few years as your graduation trip. Assume you need $ for the trip in years.
Show all work for the following questions including which finance formula you used.
If you had a lump sum of $ to save for the trip right now and you invested it at interest compounded continuously, how much more than your goal of $ would you have?
If you had the same lump sum of $ but you invested it at interest compounded monthly, how much more than your goal of $ would you have?
To save up for the trip, most of us would need to save smaller amounts periodically, rather than investing a onetime large payment. Assuming we wilt earn interest, what should the monthly deposit be to save up $ by the end of the year period?
Refer to the previous question. How much of the $ account balance at the end of years would be interest earned?
