STATISTICS

Question number 1.

If proposed amount budget for a mission trip is

$90,000 (ninety thousand dollar ) and you have 10% of the money needed for your trip, which begins in five years, and you decide to invest that money at 4% APR compounded quarterly,

Calculate out how much this will grow to by the start of your trip using the

Compound Interest Formula

Here A(t) = value of the account after t years, the initial investment, APR

(written as a decimal), number of times compounded per year, number of

year.

Question number 2.

( 2 )A philanthropic company, Missions-R-Us, has agreed to give you $100 each

month from now until the trip starts. This money will be invested in an account

that earns 6% APR compounded monthly. Using the savings plan formula, how much will this amount by the start of your trip?

Here the monthly contributions, annual interest rate as a decimal, number of

times compounded annually (12 once per month), time of the loan in years,

value of account after t years.

Question number 3.

The remaining balance must be taken out as a loan. If the above will pay for

your entire trip, you must still investigate these loan scenarios. You can consider

taking out a $10,000 emergency fund at these rates. There are two banks willing

to offer you a loan. Bank A will lend you a 5-year loan at 9% APR compounded

monthly with monthly payments. Bank B will lend you a 10-year loan at 12%

APR compounded monthly with monthly payments. Using these loans repayment formulas calculate payments for each of these loans.

Here you need to state the initial loan amount, annual interest rate as a decimal, number of

times compounded annually, time of the loan in years, your monthly payment