Question
If the couple draws a plan of saving for a vacation by putting aside $200 a month for the next three years, and if the
If the couple draws a plan of saving for a vacation by putting aside $200 a month for the next three years, and if the cost of vacation stays the same as ($9,384.44), and the interest rate is 11% compounded annually, would the couple be able to take that vacation in 2019?
a. What must their annuity be in order to make it to their vacation in 2019 if the interest rate is 15% compounded semiannually.
b. What must their annuity be in order to make it to their vacation in 2019 if the interest rate is 13.75% compounded quarterly.
c. What must their annuity be in order to make it to their vacation in 2019 if the interest rate is 11.5% compounded monthly.
d. What must their annuity be in order to make it to their vacation in 2019 if the interest rate is 8.25% compounded weekly.
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