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You would like to have $4,000 in 5 years for a special vacation following graduation by making deposits at the end of every six months
You would like to have $4,000 in 5 years for a special vacation following graduation by making deposits at the end of every six months in an annuity that pays 4.5% compounded semiannually. a. Use your TVM Solver to determine how much you should deposit at the end of every six months. b. Determine how much of the $4,000 comes from deposits and how much comes from interest? Identify the problem type: A. Savings Annuity/Sinking Fund Problem (Regular PMT to grow wealth) B. Compound Interest Problem (Lump sum, multiple interest periods) C. Payout Annuity/Amortized Loan (Regular PMT to deplete/payoff an account) D. Simple Interest Problem (Lump Sum, single interest period) Use your TVM solver to cmplete the answer below. Since you wish to acheive your goal, round final answer UP to the nearest DOLLAR. a. In order to have $4,000 in 5 years, you should deposit $ at the end of every six months. Use the answer from part (a) to complete the answers below. b. $ of the $4,000 comes from your deposits and $ comes from interest
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