Jillian currently has $500 in an account with an annual rate of return of 4.3%.She needs to save $46.07 each month for the trip to Hawaii
The $500 in her account will grow to =500*(1+0.043)^4 = 591.71
So she has to save 3000-591.71 = 2,408.29
The 2,408.29 becomes the FV and we have to calculate the PMT with a monthly rate of 0.043/12 and nper = 4*12 =48. We use the PMT function of excel
So she needs to save each month =PMT(rate,nper,pv,fv) in excel = PMT(0.043/12,48,0,2408.29) = 46.07
So she needs to save $46.07 each month for the trip to Hawaii
Rate of return is a profit on funding. It accommodates any trade in value of the investment, and/or cash flows which the investor gets from that funding, which include interest payments, coupons, coins dividends, inventory dividends or the payoff from a spinoff or based product.
Learn more about rate of return here:brainly.com/question/24301559
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