PLEASE WRITE OUT ALL OF THE STEPS, AND PROVIDE THE ANSWER ON PAPER.

You have decided to save for a winter trip in two years time by putting away $150 every month in a savings account paying 3.5% per year compounded monthly. a) How much will you have at the end of 2 years? b) Suppose that at the end of the first year you miss the payment due at the end of December (PMT #12). How much must you deposit at the end of January to offset the missed payment