Question

You are saving for a spring break cruise for the end of march of the next year thag costs $600. You start at $50 in August. At the beginning of the of each month you plan to deposit 20% more than the previous month. Will you have enough money for your tip? If not how much more do you need?

Answer 1

March is 8 months away from August and the target amount is $600.
August = $50
September = $50 + (0.2*50)=$60
October = $60 + (0.2*60)=$72
November=$72+(0.2*72)=$86.4
December=$86.4 + (0.2*$86.4)=$103.68
January=$103.68+(0.2*103.68)= $124.416
February=$124.416+(0.2*124.416)=$149.3
March=$149.3 +(0.2*149.4)=$179.2

Total amount = $824.6

Yes, she will have money for the trip