Suppose you are attempting to save $5,000 for a trip to Australia, over a span of 20 months. You open a special account with a 1.2% rate that compounds every month.
(a.) If you put $300 into the account each month, will you reach your goal? If so, by how much will you "overshoot" $5,000? If not, by how much will you be short?
(b.) What is the minimum amount you need to deposit in your account each month in order to reach $5,000 in 20 months?
(c.) Suppose that Aunt Josie gives you $400 to start saving for the trip. By how much would that reduce your minimum monthly deposit?
Make a separate table for each part and label them appropriately.