Selma and Troy are planning to take a second honeymoon in two years. They estimate that the cost will be roughly $7,985.74.
They plan to make monthly payments of $275 and expect to receive 10% annual interest on their savings.
Given this information:
a) Would they be able to take the vacation (what is the exact amount over or under their goal)?
b) What must the annual interest rate be in order to make their goal exactly?
c) What must their monthly savings payments be in order to reach their goal if the annual interest rate drops 4.5% below the rate found in part b of this problem?
You have to enter the info into a spreadsheet like this:
| Relevant Information |
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| Annual Interest Rate |
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| Periods Per Year |
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| Number of Years |
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| Needed Information |
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| Present Value |
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PV |
| Future Value |
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FV |
| Payment |
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PMT |
| Rate |
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RATE |
| Number of Periods |
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NPER |
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| Additional Calculations (if needed) |
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| Answer: |
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