Question
Allissa's employer offers its workers an optional two-month unpaid vacation after seven years of service to the firm. Alissa, who just started working for the
Allissa's employer offers its workers an optional two-month unpaid vacation after seven years of service to the firm. Alissa, who just started working for the firm plans to spend her vacation touring Asia at an estimated cost of $24000. To finance her trip, Alissa plans to make a deposit of $2500 into a savings account at the end of each of the next seven years ( the first deposit will occur one year from today). The account pays 8% annual interest. a) Will Alissa's account balance in seven years be enough to pay for her trip? b) Suppose Alissa increases her annual deposit to $2700. How large will her account be in seven years? Show your working using a calculator.
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