1. You just turned 35 and have been saving for an around-the-world vacation. You want to take the trip to celebrate your 40th birthday. You have set aside, as of today, $15,000 for such a trip. You expect the trip will cost $25,000. The financial instruments you have invested the $15,000 in have been earning, on average, about 8%. (You may ignore income taxes.)

a. Will you have enough money in that vacation account on your 40th birthday to take the trip? What will be the surplus, or shortfall, in that account when you turn 40?

Briefly state whether you think this question is causing you to look forward or backward

Please show your work, either in the form of a table accompanied by the excel formula you used or a typed textbook formula. Alternatively, the table could also be used to show calculator inputs. Please present calculator input as they have been shown in class

e.g. PV = PMT= I= N= CPT FV=